VA Loans


Veteran Holding Model House with American Flag



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


 

 

 


Contemporary Mortgage Services, Inc

498 Palm Springs Drive Suite 220
Altamonte Springs, FL 32701