VA Mortgage Loans: A Veterans Best Friend?

VA Mortgage Loans
A VA home loan is a popular option for many veterans across the US. VA loans will allow veterans to finance 100% of their house as well as not require that they pay mortgage insurance. For veterans who currently have a VA loan that is at a higher-than-market interest rate, they can easily take advantage of the VA streamline refinance with no out of pocket closing costs required.

VA doesn’t actually lend money, they only insure the loan so that if you default, the lender gets paid by the VA. It isn’t too hard to tell that because of this reason, most lenders are excited to loan money under the VA loan program.

VA Mortgage Loan Highlights Include:

• 100% financing for new home purchases
• No mortgage insurance required
• No prepay penalty in any VA loan
• VA loans have similar closing costs to other loans, even though they offer 100% financing
• A one time funding fee is charged – but can rolled into the loan

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar heating or cooling systems, water heaters, insulation, weather-stripping, storm windows/doors or other energy efficient improvements approved by the lender and VA.

VA Mortgage Loan Certificate of Eligibility
In order to qualify for an VA loan, you must have a Certificate of Eligibility from the VA and it must be in your loan package in order to qualify for a VA home loan. In the event that you need help getting a copy of your COE, be sure to contact your lender for help, they will know how to help you get a copy!

VA Loan Streamline Program
For veterans who are currently in an VA loan, the VA streamline refinance (similar to the FHA refinance streamline program) program allows you to take advantage of lower interest rates without having to completely re-qualify for a new loan. With the VA streamline refinance, you can lower your monthly payment and interest rate with no out of pocket expenses.