My New Blog

What to know about VA loans

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:


  • Negotiable interest rate
  • 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.


Call us today to discuss options for your home loan: 407-834-3377.

Posted by Holly Ecimovic on February 25th, 2022 12:34 PM

Archives:

My Favorite Blogs:

Sites That Link to This Blog:


Contemporary Mortgage Services, Inc

498 Palm Springs Drive Suite 220
Altamonte Springs, FL 32701