VA Loans

In 1944 Congress passed the G.I. Bill of Rights, which created the Veterans Administration and provided many benefits for veterans, including provisions for real estate loans. VA loans are fixed rate loans with very competitive interest rates. Eligible buyers can purchase a home with no down payment, no cash reserve, no application fee and lower closing costs. In most states, VA loans are available to refinance your current residence.

Not everyone who has served in the armed forces is eligible for a loan through the VA. The veteran must have served during specific times and for a minimum length of time. (Ask us for details.) Those who served less than the required amount of time, but were released for discharge due to a service-related disability, may also be eligible. Some members of the Reserves and National Guard may be eligible, and unmarried spouses of veterans who died as a result of service-connected injuries may be eligible. In addition to service requirements, the VA also requires that the discharge or release was not dishonorable.

Why Choose A VA Loan?

1. No down payment. VA lenders do not require a down payment on loans up to $203,000. This feature is unmatched by any other conventional or government loan program.
2. No closing costs. Closing costs can be paid by the seller, or gift funds may be used. The veteran can literally move in without any of their own funds!
3. Easier qualifying standards. The VA is more liberal than conventional investors when determining how much a borrower will be allowed to spend on housing and other monthly obligations. The VA is also more lenient when reviewing a borrower's credit history.
4. No prepayment penalties. The VA does not allow prepayment penalties to be applied to a loan.
5. VA loans are assumable under certain conditions. (Conventional fixed-rate loans are rarely assumable.)

The most notable difference between VA and FHA loans is that the VA guarantees a portion of the loan and the FHA insures the entire amount of the loan.