What you need to know about VA Loans

Looking to buy a new house or refinance? As Fairway Independent Mortgage or Temple, TX if a VA loan is right for you?

A VA loan is a mortgage loan that is backed and guaranteed by the US department of Veterans Affairs. It was created and is still offered today to give veterans or surviving spouses long-term financing. A VA loan can only be given to a veteran for the purchase of a home that they will be occupying personally. If the loan is approved the VA guarantees a portion of the loan to the lender protecting them against any loss. However this is only covered up the amount guaranteed to the veteran.

Features of a VA Loan:

  • Guarantee equal opportunity for qualified veterans trying obtain a loan
  • 0 down payment. The only time a down payment may be required is if the purchase price is more than the reasonable value of the property.
  • Interest rates are negotiable.
  • You are able to finance the VA funding fee
  • You are able to prepay without a penalty
  • Lower or equal closing costs with other loans
  • An assumable mortgage
  • Any homes that are inspected by the VA in the process of building will need a warranty from the builder and will require assistance from VA to get cooperation of the builder.
  • The VA will assist any veteran borrowers that find themselves defaulting on their loans