VA (Veterans Administration) Home Loans
For those who have served in the military or reserves, or who are veterans, the VA (Veteran’s Administration) home loan was created for you. The VA-guaranteed mortgage helps veterans save money while buying a home.
VA Loan Overview
The VA home loan is backed by the US Department of Veterans Affairs. This government-backed mortgage was tailor made to meet the needs of homebuyers who’ve served their country as part of the Army, Navy, Air Force or Marines, including military Reserves. The government backing allows lenders to offer this no-down-payment home loan, which recognizes the fact that military members and former members are reliable and honorable, and they make good homeowners.
Advantages of VA Mortgage Loans
Perhaps the greatest advantage of taking out a VA home loan is that it comes with no down payment. (Note that if the purchase price of the home you’re interested in is priced higher than its appraised value, your lender may require a down payment from you.) In general, however, lenders typically don’t ask for a down payment for these loans.
However, if you should opt to make a down payment (of five percent or more), the lender can offer to finance the VA funding fee, adding it to the mortgage so that you don’t have to pay upfront. You won’t need to pay for PMI (private mortgage insurance) with a VA loan, another perk. You will likely also be offered a great interest rate for your VA mortgage.
You’ll also save money on loan closing costs, because the government has placed a limit on the amount lenders may charge you for closing costs. (Your real estate agent may even get the home’s seller to pay these costs.) In addition, you can shop around to be sure you get the lowest rate for your VA loan. There is no pre-pay penalty with this mortgage option, and you can reach out for the VA’s help if you ever risk defaulting on the mortgage.
VA Loan Candidates
If you are active-duty military or a veteran, you may qualify. National Guard, Reserves, and some surviving spouses of military personnel may also be eligible for the VA home loan. The home you’re buying must be your primary residence. You’ll also need an adequate credit score and must meet certain income qualifications. In addition, you must have a COE (Certificate of Eligibility).
Learn More about the VA Loan
Find out for certain if you’re eligible for a Veteran’s Administration mortgage for your upcoming home purchase. Simply talk with the experts at Homespire Mortgage. We serve the local areas of Frostburg, MD, Cumberland, MD, Lonaconing, MD, and Westernport, MD from our headquarters in Cumberland. In WV, we provide mortgages in Short Gap and Keyser, and in PA we serve the Bedford areas.