Q: What is a VA Loan?
First off- The VA Home Loan is not a loan. The VA GAURENTEES your loan. The guaranty means the lender is protected against loss if you fail to repay the loan.
Q: Does my entitlement guarantee that I will get a home loan?
No, you, the buyer need to still qualify for a loan. The lenders must also comply with VA income and credit standards. Once you're qualified for a loan you will need to obtain a Certificate of Eligibility.
Q: How do I get a Certificate of Eligibility?
It may be possible to obtain a Certificate of Eligibility from your lender. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds
O: What are the benefits of a VA home loan?
- Equal opportunity.
- No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
- Buyer informed of reasonable value.
- Negotiable interest rate.
- Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
- Closing costs are comparable with other financing types (and may be lower).
- No mortgage insurance premiums.
- An assumable mortgage.
- Right to prepay without penalty.
- For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
- VA assistance to veteran borrowers in default due to temporary financial difficulty.
Q: Do I have to pay a fee for a VA home loan?
The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan.
Have a question not answered here? CONTACT ME
Comments(3)