Veteran Administration Loans (VA Loans)
If you are a veteran you have a great advantage to getting a home loan. The VA is a government funded program specifically created for veterans. You must have a Certificate of Eligibility which is the proof of veteran status. If you do not have your certificate of eligibility your lender can order one for you. However, it does take a little time.
A VA loan can not only help a veteran, but also a surviving spouse of a deceased veteran as well. The VA administration will not allow certain fees to be charged to the home-buyer and they protect you from being taken advantage of y ensuring your mortgage rate is in line. VA loans are so specific and detailed that they do not allow any room for over charging or the raising of fees by the lender. They are guaranteed and must be for personal owner occupancy only. There is a limit to the loan amount for a VA loan, usually $240,000.
Basic entitlement for a veteran is $36,000, but it can be up to $60,000 for certain loans over $144,000.
Advantages to getting a VA loan:
- No down payment required
- Negotiable mortgage rates
- Reduced and protected fees
- Lower closing cost
- No mortgage insurance premiums
- Mortgage may be assumed
- Can prepay without penalty
- VA specific appraisers required for extra protection for home-buyer
If you’re a veteran be sure to take advantage of a VA Loan.