The more you know about the VA Loan program, the more you
will realize how little "red tape" there really
is in getting a VA loan. These loans are often made without
any down payment at all, and frequently offer lower interest
rates than is ordinarily available with other loans.
Aside from the veteran's certificate of eligibility and
the VA-assigned appraisal, the application process is not
much different than any other type of mortgage loan. And if
the lender is approved for automatic processing, as more and
more lenders are now, a buyer's loan can be processed and
closed by the lender without waiting for VA's approval of
the credit application.
Other benefits of VA loans are:
Your mortgage is backed by the VA.
Your mortgage can be used for:
Buying a home, including townhouse or condominium unit in
a VA-approved project.
Building a home.
Simultaneously purchasing and improving a home.
Improving a home by installing energy-related 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. These features may be added with the purchase of
an existing dwelling or by refinancing a home owned and
occupied by the veteran. A loan can be increased up to $3,000
based on documented costs or up to $6,000 if the increase
in the mortgage payment is offset by the expected reduction
in utility costs. A refinancing loan may not exceed 90 percent
of the appraised value plus the costs of the improvements.
Check with a lender or VA for details.
Refinancing an existing home loan up to 90 percent of
the VA-established reasonable value or to refinance an existing
VA loan to reduce the interest rate.
Buying a manufactured home and/or lot.
No downpayment is required in most cases.
Borrow up to 100% of purchase price.
Negotiate interest rate with lender.
Lower closing costs.
30 year loans with choice of payment plans:
traditional fixed payment
graduated payment mortgage
growing equity mortgage
Mortgage is assumable.
No Private Mortgage Insurance (PMI).
No penalties if you prepay the loan.
VA support during temporary financial difficulties.
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