VA Home Loan Information
A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs. VA loans are designed to offer financing to American veterans or their surviving spouses. The goal of VA home mortgage loans is to make the lending process more available to veterans and easier financing options. VA loans are offered in areas where private financing may not be avaliable, such as rural areas and small towns. They also allow the borrower to purchase a property with no down payment.
As mentioned earlier VA home mortgage loans allow the veteran to finance 100% of the home without paying private mortgage insuracne (PMI) or without having to use other creative financing methods such as piggy back loans or 2nd mortgages.
The major drawback to a VA loan is a funding fee is paid directly to the VA. This fee can range from 0 to 3.3% of the loan. This amount can be financed in with the mortgage loan but could be a hefty chunk if the loan amount is large.
VA loans seem helpful for many home buyers. Although there is a drawback to these loans, I think it is well worth it because home prices almost always appreciate. You will be missing out if you rent your whole life…