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 are comparable and sometimes lower than other financing types

• No monthly mortgage insurance requirement

• Right to prepay your loan without penalties

• The Mortgage can be taken over (or assumed) by the buyer when a home is sold to another eligible veteran

• 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.  If a borrower receives VA disability benefit, then in most cases the funding fee is waived altogether.
 

A VA loan can be used to buy a home, refinance an existing home loan, 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.  If you don't have your copy, we can sometimes obtain a copy for you from the VA.  Just ask!