Money : VA Loans - Benefits
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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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