VA Loans

how va loans work

Looking for a VA Loan?

Any Veteran or a surviving un-remarried spouse who is interested in finding an affordable mortgage should seriously consider a VA loan. These types of Veteran’s loans are guaranteed by the US Department of Veterans Affairs and may be issued by qualified lenders. They must be used for the purchase of a primary residence and they offer a number of advantages to the borrowers.

As a veteran, we thank you for your service and want to help. Our team of experienced Mortgage Advisors can help you find the perfect Veteran’s loan for your needs. Give us a call at (800) 927-6560 for your FREE consultation or click here to apply online .

How VA Loans Work:

Veteran’s loans are actually not made by the VA. Instead, they are guaranteed by the VA and made by a network of private lenders including banks and mortgage companies. As a veteran or an active duty military member, you are eligible for such loans. Additionally, reservists and National Guard members are also included (along with some surviving spouses).

VA loans can allow for up to 103.3 percent financing without any private mortgage insurance. You may also be eligible for a 20 percent second mortgage and up to an additional $6,000 for energy efficient improvements. By the way, that 3.3 percent on top of the full purchase price that may be included in the loan is the VA funding fee. Without monthly PMI, more of the

actual mortgage payment goes towards qualifying, meaning larger loans are possible.

Some Benefits Of Veteran’s Loans:

There are some excellent benefits of these loans, especially considering how VA loans work. For starters, there is no down payment required unless the purchase price is more than the reasonable value of the property.

As mentioned above, you are able to avoid most of the typical costs and fees present in many other types of mortgages. You have the ability to finance the VA loan fee. However, if you put down at least 5 percent there will be reduced funding fees and veterans who receive VA compensation are exempted from these entirely. Closing costs will be no more than any other types of financing. This is also an assumable mortgage and there are no prepayment penalties.

Maximum VA Loan Amounts:

The agency says there is no maximum set loan limit for their guaranteed loans. Having said that, you may run into specific county limits. Those are normally used to calculate the maximum amount the VA will guarantee. This is usually up to the typical conforming loan amount, currently $417,000 (although you would not need to make a down payment in such a case).

Bottom Line:

CMA is the VA loan experts. We understand how VA loans work and are ready to help you fulfill your dream of home ownership. Call us today for your FREE consultation at (800) 927-6560 or click here to apply online .


Category: Credit

Similar articles: