• Veterans Affairs Loans

    The main purpose of the VA home loan program is to help veterans finance
    the purchase of homes with favorable loan terms and at a rate of interest
    which is usually lower than the rate charged on other types of mortgage loans.

     WHAT VA CAN DO ?

    • VA loans offer the following important features:
    • Ensure that all veterans are given an equal opportunity to buy homes
      with VA assistance, without regard to their race, color, religion, sex,
      handicap, familial status, or national origin;
    • No down payment (unless required by the lender, the purchase price
      is more than the reasonable value of the property as determined by
      VA, or the loan is made with graduated payment features);
    • A freely negotiable fixed interest rate competitive with conventional
      mortgage interest rates;
    • The buyer is informed of the estimated reasonable value of the property;
    • Limitations on closing costs;

    • An assumable mortgage. However, for loans closed on or after March 1, 1988,
      the assumption must be approved in advance by the lender or VA. Generally,
      this involves a review of the creditworthiness of the purchaser
      (ability and willingness to make the mortgage payments). Be sure to see section
      entitled “Loan Repayment Terms”;
       
    • Loan amortization (repayment) terms;
    • Right to prepay without penalty (lenders may require that any partial prepayments
      be in the amount of at least 1 monthly installment of principal or $100, whichever is less);

    • For houses inspected by VA during construction, a warranty from the builder and VA
      assistance in trying to obtain the builder’s cooperation in correcting any justified
      construction complaint; and

    • Forbearance extended to VA homeowners experiencing temporary financial difficulty. 

    Veterans Affairs Loans