VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties 
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan. 

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

VA Allowable Fees (not all of these fees are required):

• lender’s appraisals
• lender’s inspections, except in construction loan cases
• loan closing or settlement fees
• document preparation fees
• preparing loan papers or conveyancing fees
• attorney’s services other than for title work
• photographs
• interest rate lock-in fees
• postage and other mailing charges, stationery, telephone calls, and other overhead
• amortization schedules, pass books, and membership or entrance fees
• escrow fees or charges
• notary fees
• commitment fees or marketing fees of any secondary purchaser of the mortgage and preparation and recording of assignment of mortgage to such purchaser
• trustee’s fees or charges
• loan application or processing fees
• fees for preparation of truth-in-lending disclosure statement
• fees charged by loan brokers, finders or other third parties whether affiliated with the lender or not, and
• tax service fees.

For more information on VA loans and to see if you qualify, contact us today 407-834-3377 or info@contemporarymortgage.com