VA Mortgage Loan is simply the best, better than all the rest. The US Department of Veteran Affairs has designed and backs the VA mortgage to help active - duty military personnel, Veterans and military spouse to become homeowners at a reasonable cost. There isn't any down payment, no mortgage insurance, and it allows guidelines that are flexible to qualify.
The VA mortgage truly requires no money down. There is a "funding fee," an upfront cost based on your loan amount, and your type of eligible service. Funding fees can be financed with the mortgage. VA funding fees are normally waived for veterans who receive VA disability compensation and unmarried surviving spouses of veterans who died in service or as a result of a service - connected disability.
Normally, mortgage borrowers must pay private mortgage insurance (PMI) for a conventional mortgage or a mortgage insurance premium (MIP) for a FHA mortgage. The insurance protect the lender in event that the borrower default on the mortgage. But with a VA mortgage, you pay neither a down payment, nor mortgage insurance.
The federal government guarantees up to 100% of a house up to $417,000 depending on the area of the country. The lender will be made whole even if the borrower is unable to make monthly payments for whatever reasons. In case of default the lender would be coved by selling the house, even at a discount and the different taken from the guaranteed amount. This would allow lenders to offer VA mortgages with exceptional attractive terms to borrowers.
VA mortgage rates are not set by the VA. Instead VA mortgages are offered by savings and loans institutions, credit unions, US banks and mortgage lenders, they set their own VA mortgage rates and fees. So, it would be smart to shop and compare mortgage offers and still choose the VA mortgage that works best for you.
Whenever you decide to sell your home, there is no prepayment penalty or fee for early exit, no matter within what time frame you decide to sell. You can refinance your existing VA mortgage into another VA mortgage via the VA agency's Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non- VA mortgage at any time.
A VA approved lender can help you decide how to use the options available with a VA mortgage. A VA mortgage can be a fixed rate or an adjustable rate mortgage, used to buy a house, condo, newly built home, manufactured home or duplex. It can be used to refinance your existing mortgage, make repairs or improvement to your home or even make your home more energy efficient. The choices are all yours.