VA Loan

A VA loan is a particular mortgage aimed at providing aid to veterans and service members on active duty. The aim is to make homeownership accessible to those who have served the country by giving better loan terms.

In 1944 there was an act called the Servicemen’s Readjustment Act. This law began veteran home loans, enabling World War II veterans to buy houses as part of “thanks for your service”.

No Down Payment: A Closer Look

Veterans can now buy a home with no down payment thanks to VA loans, which relieve financial burdens and promote greater flexibility and financial stability.

Closing Cost Limits: What You Need to Know

VA Loans impose limits on closing costs, protecting veterans against excessive fees associated with the home buying process. In the end, this enhances the affordability of homeownership.

Advantages of Lower Interest Rates

If you go for a VA home loan, you won’t have to pay extra every month on insurance which is often required if you pay a big amount at the start. That saves you money.

Elimination of Private Mortgage Insurance

Normally, you will have to pay for insurance unless you put down a large deposit. However, with VA loans there is no need for insurance, hence you pay less every month.

Understanding Flexible Credit Guidelines

VA Loans accommodate veterans with varying credit profiles, offering more lenient guidelines compared to traditional mortgages, making homeownership accessible to a broad range of veterans.

Up Front Funding Fee

The VA Loan charges an Up Front Funding Fee which is added to the Loan Principal.

VA has determined that the following can be on the loan:

Veteran or Active Duty Service Person that meets the eligibility guidelines
Veteran or Active Duty Servicer Person and a Spouse
Veteran or Active Duty Service Person and another Veteran or Active Duty Service Person.

A civilian who is not a spouse may not be on the loan with the Veteran or Active Duty Service Person

Loan Purposes: A VA Loan may be used for either purchase or refinance

Purchase: A veteran may purchase an eligible property that the veteran intends to occupy as their residence

Refinance: This is for the refinance of an existing home:
The veteran may take cash out or just reduce the rate or terms of an existing loan