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A VA loan is a loan that is guaranteed by the Department of Veterans Affairs. These loans have a number of benefits, including a lower interest rate than conventional loans and a more flexible repayment schedule.
To qualify for a VA loan, you must meet certain requirements. You must be a veteran or your spouse must be a veteran. You must have served in the military during wartime. You must also have a good credit history.
You can borrow up to $417,000, but it’s recommended that you borrow less than this amount. The higher the amount you borrow, the lower the interest rate you’ll get. If you want to borrow more than \$417,000, you’ll have to pay a penalty fee.
The interest rate on a VA loan is based on the rate that the government charges banks. This rate changes frequently.
If you’re approved for a VA loan, you’ll receive an application form from the lender. You’ll fill out this form and send it to the lender along with all the other required documents. The lender will review your application and determine whether you qualify for a VA loan. If you do qualify, they’ll send you an approval letter.
The repayment terms on a VA loan are different from those of conventional loans. A conventional loan has a fixed interest rate. The repayment terms on a VA loan can vary. The payment may be based on the number of months until the loan is paid off or the total amount borrowed.
Some lenders offer additional benefits with a VA loan. They might waive points or fees, provide a grace period before the loan begins to accrue interest, or make payments to a savings account for you. Some lenders also offer special programs to help veterans and their families buy homes.
VA Loans helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
VA loans offer better terms and interest rates than most other home loans. 100% financing — typically, there is no down payment required for a VA loan, as long as the purchase sales price of the home does not exceed the appraised value of the home. … There is no penalty for paying off the loan early.
You may be eligible for a VA loan by meeting one or more of the following requirements:
VA mortgage loans also come with minimum property requirements that can end up forcing home sellers to make many repairs. Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency’s mortgages.