The Basics of a VA Home Loan
The VA Home Loan is a special mortgage available only to veterans and it offers several main incentives that make it easier for a veteran to purchase a home. It is guaranteed by the U.S. Department of Veterans Affairs (VA) and was originally passed as the Servicemen’s Readjustment Act by the U.S. Congress in 1944.
The original intent of the loan program is to supply home financing to eligible veterans in areas where private financing is not usually available and to help veterans purchase properties with no down payment.
These benefits include:
- No down payment or private mortgage insurance
- Qualified buyers can finance 100% of the home’s value
- The opportunity to borrow up to $10,000 at 0% interest over 30 years
- No pre-payment penalties
- A loan won’t be denied based solely on low credit score
- A participant can refinance to a lower rate within the VA program without re-qualifying
- VA limits the amount you can be charged for closing costs
- Each loan is backed by a VA loan guaranty and can offer interest rates typically 0.5 to 1% lower than conventional interest rates
We’ve been writing VA loans since our doors opened in 1949 and every VA loan written by us will be serviced by our experienced staff that lives in the same state as you. If you are a veteran and are interested in applying for a VA loan, contact a representative at McCue Mortgage today.