A VA loan is a mortgage loan that the Veterans Administration guarantees. This type of loan gives Veterans and/or their surviving partners who have not remarried a federally guaranteed loan without having to pay a down payment. This program has been highly effective in providing homes for millions of American Veterans and their families.
Benefits:
- No down payment required.
- Lower interest rate.
- VA doesn’t require private Mortgage Insurance Premium (MIP).
- Limit on amount of origination fees and closing costs charged by lenders.
- Appraisal fees are also limited.
Features:
- Borrowers with remaining eligibility must provide a Certificate of Eligibility from the VA.
- Both the lender and the seller can pay closing costs.
- Borrowers are required to pay a one-time funding fee based on the amount of the loan and the applicant’s length of service.
