February 25th, 2022 12:34 PM by Holly Ecimovic
What are VA loans?
VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veterans 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:
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.
Call us today to discuss options for your home loan: 407-834-3377.