What is a VA Loan? In 1944 the GI Bill of Rights introduced the VA Loan. Through the original Servicemen’s Readjustment Act a Veteran could now purchase a home with a federally backed and guaranteed home loan. With this bill signed by the late great President Franklin D. Roosevelt Veterans are now provided VA loan benefits to purchase a home with no money down. The dream of owning a home is now attainable for our Veterans and their families. The Government does not make the loans they just guaranty the protection to the lender. The home loans are provided by private lending institutions and mortgage companies. The guaranty provides added protection to the loan which is passed on to eligible veterans for beneficial financing terms. For more information on what is a VA Loan and other home loan guaranty benefits here is a helpful link to the Department of Veterans Affairs.
What is a VA Loan and What Can it be Used For?
Many Veterans still ask what is a VA Loan and what can I use it for? The VA loan is very similar to the FHA loan except it is designed specifically for Veterans. Read more here about FHA vs VA Loans. Veterans have many options of the type of homes that can be purchased through a VA home loan. VA home loans need to be used for the main purpose of a veteran’s primary residence within the confines of the United States. Here a few options of the type of properties that can be obtained through a VA Mortgage.
• A VA-approved project Condo or Townhome.
• New construction residence.
• A manufactured home and/or lot.
• Home refinancing and certain home improvements.
• Existing single family home.
What is a VA Loan and its Benefits?
An eligible veteran has the option to Purchase a home with a 100% financing with no down payment. This is a loan option that is very beneficial for veterans looking to buy their first home. There are also some other finance options for Veterans like a VA hybrid loan or a VA streamline mortgage. Depending on the situation these other VA mortgage options may be beneficial. Below are some more benefits of a VA home loan.
• 100% financing
• No penalties if you prepay the loan.
• No Private Mortgage Insurance (PMI).
• Competitive interest rates.
• Sellers can pay all closing costs.
• Loan qualifications are usually easier than conventional loans.
Speak with a VA Home Loan Specialist Now, Call 1-855-956-4040