What is a VA Guaranteed Loan?
VA guaranteed loans are made to eligible veterans for the purchase of a home which must be for their own personal occupancy. With a loan approval, VA will guarantee a portion of the loan to the mortgage lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms. There is no maximum VA loan but lenders will generally limit VA loans to $417,000. This is because lenders sell VA loans in the secondary market, which currently places maximum loan limits of $417,000. For loans up to this amount, it is usually possible for a qualified veteran to obtain no down payment financing. A veteran still has to be qualified for their income and credit for the asking price of a purchase.
VA Loans offer the following important features:
• Equal opportunity for all qualified veterans to obtain a VA loan
• No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Buyer informed of reasonable value.
• The borrower usually receives a lower interest rate than is ordinarily available with other loans.
• Ability to finance the VA funding fee (plus reduced funding fees exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No monthly mortgage insurance premiums.
• An assumable mortgage.
• Right to repay without penalty. VA assistance to veteran borrowers in default due to temporary financial difficulty.
Stepping Stone Mortgage, Inc. is a qualified mortgage lender with all loan officers and processing staff trained to handle your inquiries. Our dedicated staff will help you through the loan process in a very efficient manner for you to purchase or refinance your home.
For additional information on VA Loans please click on the link below.