The term VA is short for the “Department of Veterans Affairs.” Through the GI Bill of Rights this type of loan came into affect in 1944.
In order to qualify for this type of mortgage you must be either active in the service, a veteran, reservist, part of the Public Health Service, or even the spouse of a veteran who is no longer with us (as long as the borrower is not remarried). This home loan may only be borrowed for the veterans primary residence.
This type of loan is specialized to assist American veterans with easy financing. But not all veterans are interested in this type of loan program.
Through a VA mortgage, the maximum amount a veteran can borrow with zero down payment is $417,000.
Benefits that come with a VA loan:
- Your mortgage lender will require no down payment.
- The veteran may be able to negotiate the interest rate with their lender.
- No mortgage insurance premiums.
- No repayment penalty.
- Even borrowers who don’t have good credit may be eligible for a VA loan.
- This loan will be much easier to qualify for than a traditional loan.
So if you are a veteran or even active in the service you may want to look into a VA loan for you or your family. Many lenders offer these mortgages so make sure you look around and get the best deal.