These are up to 100% financing (zero-down) loans exclusively for eligible military veterans, or their surviving spouses (if they do not remarry). VA loans are guaranteed by the United States Department of Veterans Affairs (VA). They can be a 30 year term or a 15 year term. VA loans are usually a fixed rate, but can also be an adjustable rate mortgage (ARM) if desired. Here’s why you’d consider a VA loan:
- No down payment required is the most attractive option. Borrowers can finance 100% of the purchase price. The sellers can also pay your closing costs/prepaids, up to 4% of the purchase price.
- No monthly PMI (private mortgage insurance) is required on VA loans, which make the monthly payment more attractive, especially when not putting at least 20% down. There is a VA funding fee that is financed into the loan is most cases.
- Flexible underwriting for credit, income & assets are in place for VA loans, designed to help more of America’s military heroes to be able to purchase a home of their own. There are special additional guidelines in place in these areas for VA borrowers.
