VA Loans

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 a borrower fails to repay the loan.

Other benefits of a VA loan include:

• Competitve Mortgage Rates
• In most cases, no down payment is required on a VA guaranteed loan
• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement
• Right to prepay loan without penalties
• Counseling and assistance available to veteran borrowers having financial difficulty  

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.  The funding fee may be less if the borrower chooses to put money down on the home loan.

A VA loan can be used to buy a home, build a home 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 home 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.