Designed to offer long-term financing to American Verterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Verterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan rather than a conventional loan.Here’s how it works:
- 100% financing without private mortgage insurance or 20% second mortgage.
- VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the Veterans Administration.
- When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
- Then refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.
Did You Know?
| That if the Veterans Administration deemed that a veteran has more than a 10% disability, that the funding fee is waived. |
