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 guarantee means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.
Other benefits of a VA loan include:
- Negotiable interest rate
- Closing costs comparable, and sometimes lower, than other financing types *
- No private mortgage insurance requirement
- Mortgage can be taken over (or “assumed”) by the buyer when a home is sold
- Counseling and assistance is available to veteran borrowers having financial difficulty or facing default on their loan
* 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.
A VA Certificate of Eligibility must be presented to the lender to qualify for the loan.
Primary Residential Mortgage, Inc. has a Certified Military Housing specialist who would be happy to discuss a VA loan and other options for your specific needs. For a consultation, contact PRMI today.