VA Loan Information

VA FINANCING - A GOOD DEAL FOR VETERANS

• Most important consideration, no downpayment is required in most cases.
• Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000.
• Flexibility of negotiating interest rates with the lender.
• No monthly mortgage insurance premium to pay.
• Limitation on buyer's closing costs.
• An appraisal which informs the buyer of property value.
• Thirty year loans with a choice of repayment plans:

• Traditional fixed payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage);
• Graduated Payment Mortgage--GPM (low initial payments which gradually rise to a level payment starting in the sixth year); and
• In some areas, Growing Equity Mortgages-GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan)

• For most loans for new houses, construction is inspected at appropriate stages to ensure compliance with the approved plans, and a 1-year warranty is required from the builder that the house is built in conformity with the approved plans and specifications. In those cases where the builder provides an acceptable 10-year warranty plan, only a final inspection may be required.
• An assumable mortgage, subject to VA approval of the assumer's credit.
• Right to prepay loan without penalty.
• VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.