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