What is a VA loan?
The VA loan is a mortgage that’s guaranteed by the U.S. Department of Veterans Affairs (VA). This guarantee helps us offer qualified Veterans, Active-Duty Military, and others more favorable terms on a home loan or mortgage refinance.
You don’t need to be a first-time homebuyer to receive VA mortgage benefits. If you remain in good standing without foreclosure, you can reuse the loan on other home purchases. And typically, it doesn’t require a down payment making it easier for our heroes to get the home they want.
What are the benefits of a VA home loan?
The VA offers a few home purchase and mortgage refinance loan programs depending on your needs. In general, these programs can help you qualify for a veterans loan with a competitive interest rate and doesn’t require private mortgage insurance (PMI). The VA also offers programs that let you refinance an existing VA home loan or take cash out of your home’s equity.
Can a private lender provide a VA loan?
Yes, private lenders like banks, mortgage companies, and savings and loan associations can provide VA-guaranteed home loans to eligible Veterans and Active-Duty Service Members.
How does the VA loan help you in the military?
The VA home loan program helps Veterans, Service Members, and eligible Surviving Spouses become homeowners. The VA guarantees a portion of the loan, which allows lenders to offer more favorable terms, including interest rates, eliminating down payments and mortgage insurance, and favorable closing costs.
How does a VA loan work?
A VA loans work different than a Conventional Loans. First, you’ll have to see if you qualify for VA guidelines and obtain a Certificate of Eligibility (COE). The overall process is similar to most other mortgage options, including pre-qualification and pre-approval. Once you find a home and put in an offer, you’ll go through the VA appraisal and underwriting process to meet the minimum property requirements. After all issues are cleared, you’re ready to close on your new home.