The Department of Veterans Affairs (VA) provides dozens of federal benefits to veterans and their dependents, including VA home loans, educational assistance, disability compensation and more. As a military veteran, you may apply for a home loan that is guaranteed by the federal government.
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.
* Negotiable interest rate.
* Closing costs are much lower, and can be paid for or gifted, to the Veteran.
* 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.
VA Home Loan General Requirements:
In general, a service member is eligible for a VA home loan if he or she meets any one of these requirements:
- Served 181 days during peacetime (Active Duty)
- Served 90 days during war time (Active Duty)
- Served 6 years in the Reserves or National Guard
- Is the spouse of a service member who died while in service or from a service-connected disability
Did you know The VA allows Cashout up to 100% of the value of your house?
VA’s Cash-Out Refinance Loan is for homeowners who want to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home.
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