VA Loans (Veteran’s Administration)

VA loans are a small way to say thank you to those who have bravely served our country.  Our veterans can get 100% financing to purchase a home.

Like the FHA loan, a VA loan is also beneficial to borrowers who have struggled with their credit.  Your Mortgage Planner will be able to tell you whether or not your specific credit history is sufficient to qualify.

The VA loan has a Financing Fee which is charged by VA.  This fee amount is dependent on your type of service and can be financed in the purchase loan amount.  One true benefit to the VA loan is that there is no mortgage insurance.  The one time Financing Fee covers the risk involved when lending 100% of a purchase price.

Lenders are a bit more strict as far as property condition on a VA loan.  The VA needs to make sure that their Vets are getting homes that are in good shape and that won’t cause them problems in the future.  Due to this, VA will not allow any part of the property structures to be unpermitted or any major repairs to be necessary.  As of October 2010, the VA has stopped allowing financing on homes with water catchment systems.  So any Veterans looking to purchase a home needs to look in areas that have County water supply.

There is also a VA IRRRL loan (Interest Rate Reduction Refinance Loan) for those Vets who would like to refinance an existing VA loan.  It is a much cheaper way to lower your interest rate than a typical Conventional mortgage.  And there is no appraisal or income verification required.