VA Loans

Active duty armed service members, veterans and surviving spouses may qualify for a VA Loan that requires no down payment.  VA loans are guaranteed by the U.S. Department of Veterans Affairs.  In addition to no down payment, these loans usually offer a lower fixed interest rate and limited closing costs.  While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.

Benefits of a VA loan include:

• No down payment required
• Today’s interest rates are often lower than conforming loans
• Closing costs are comparable – and sometimes lower – than conventional financing types
• No monthly private mortgage insurance is required
• VA mortgages can be “assumed” by the new buyer when the home is sold (this may result in loss of the use of a VA loan an a future home if the VA loan is not paid off)

Although mortgage insurance is not required, the VA charges an upfront funding fee of 0.5% to 3.6% of the loan amount. The fee may be paid in cash by the buyer or seller, but most often it is financed into the loan amount. Veterans receiving VA disability often do not pay the funding fee.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

A Certificate of Eligibility from the VA must be issued by the VA and presented to us to determine eligibility for a VA loan.

At First Nations Home Mortgage we answer questions about VA loans every day. Consultations are always free! Call today to learn more.