VA Mortgage

The VA Mortgage is designed to offer long-term financing to American veterans. A VA Loan is issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration.  The VA determines eligibility and issues a certificate to qualifying applicants to submit to their lender of choice. It is generally easier to qualify for a VA loan than conventional loans.

The VA Loan is very popular for veterans. In the case where the veteran does not have a 20% down payment, the VA Mortgage program provides the loan with no mortgage insurance. This saves the veteran a considerable amount of money monthly compared to similar programs. On top of that, this mortgage allows for 100% financing when purchasing a home. On a refinance the VA Loan will go up to 90% of the homes value.  The VA Mortgage does have a funding fee. The funding fee is financed into the loan and is paid to the VA. This is how the VA helps to replenish the funds for the program. The funding fee varies depending on the type of service the Veteran was involved with as well as if they have used the program before.

The qualification guidelines for a VA Mortgage are less stringent than of a typicaly mortgage. Because the loan is backed by the government, lenders have relaxed the often strict lending rules for VA Loan applicants making them easier to obtain. So you do not need a perfect credit rating. There is room for financial errors that existed in the past as long as there is a proven track record it has been corrected.

VA Mortgage Certificate of Eligibility Instructions – As a veteran you need a certificate of eligibility before applying for a VA loan. This link will put you right in the instructions screen on the web site.
US Department of Veterans Affairs Website