VA mortgage loans are loans that are partially guaranteed by the US Government as a benefit to veterans of the U. S. armed services. VA loan guarantee program was created to help veterans assimilate into civilian life after serving in the armed forces. VA loans offer several advantages over FHA or conventional loans.

• A veteran can purchase a home with zero down payment.
• Credit requirements are less stringent.
• No mortgage insurance even with zero down payment.

Maximum loan amount with zero down payment for VA loans is $417,000. Borrowers pay a funding fee to the VA of 2.15% for first time users. The funding fee is financed into the mortgage. As the down payment increases the funding fee decreases. For instance, with 10% down the funding fee is 1.25%. Funding fees are higher for National Guard Veterans. The VA uses the fee to administer the home guarantee program.

Eligibility for the program requires an honorable discharge after at least 24 months of active duty or current enlistment in the military. Veterans must provide a Certificate of eligibility to the lender to apply for a VA loan.

Veterans Administration mortgages are for the purchase or refinance of owner occupied properties. Co-signers are not permitted except for the spouse of the veteran.

VA mortgage rates are generally lower than conventional loans because GNMA handles the disposition of the loans after closing.

Please contact the financial experts at SunQuest Funding for more information about VA loans.