One of the best mortgage loans introduced has been the VA Loan but sadly not many people know exactly what this type of mortgage loan is.
In this article we will break down the basics of VA loans so you will be more knowledgeable if you plan on using your VA loan benefit to buy a home for your family.
Guaranteed By the U.S. Government
A VA loan is a mortgage loan that’s been guaranteed by the United States Department of Veteran Affairs.
This mortgage was designed specifically for eligible Veterans, including their surviving spouses and it excels over other mortgage loan products because it enables a Veteran to buy a home without putting any money down.
The Best Mortgage Loan for Veterans
Unlike other mortgage loans a VA Loan offers 100% financing, no private mortgage insurance requirement, close to $6,000 that can be used for energy efficiency improvements and so much more.
To qualify for a VA loan you must have served for at least 6 years in the National Guard or your local Reserves, 90 days consecutively during war or at least 181 days during peacetime.
Better Than Fannie and Freddie
What’s great about VA Loans is that they are also better than Fannie Mae or Freddie Mac loans because there isn’t a Private Mortgage Insurance requirement and Veterans have many options including the ability to borrow up to 100.55 of their total loan amount if they planning on refinancing their VA loan amount.
Helping Veterans Since 1944
Originally known as the Servicemen’s Readjustment Act, the VA Loan has been a part of life for Veterans since 1944 and since its inception over 20 million United States Veterans have had home loans that were insured by the United States Federal Government.
Besides home loans the VA will also authorize or guarantee loans to farms, and businesses including alterations, repairs or improvements to those dwellings before a home or property are habitable.
Learn More about VA Loans
To learn more about VA loans, or to view homes for sale across Southern California, contact Fred Sed Realty today by calling us at (800) 921-9231 or connect with us online.