The VA, or Department of Veterans Affairs, provides several forms of assistance to those who are serving in the military and those who have served in the past. One of the benefits offered via the VA is home-buying assistance.
A VA loan is offered to servicemembers, veterans and surviving spouses who are deemed eligible. These loans are provided by private lenders, not the government as some people believe. The VA, in turn, guarantees some of the loan, and a lender will provide more favorable terms because of this guarantee.
A purchase loan backed by the VA allows people the option of purchasing a home at a competitive interest rate. A VA loan typically does not require a down payment and homebuyers are not required to pay for private mortgage insurance. The VA also offers refinance loans such as cash out refinance loans and interest rate reduction refinance loans.
Other home loans backed by the VA include Native American Direct Loans and Adapted Housing Grants. Once a person obtains a Certificate of Eligibility, they can utilize the lender of their choice to secure financing. Even though these loans are backed by the VA, a homebuyer or someone wishing to refinance must still meet credit and income requirements.
If you are interested in obtaining a mortgage loan backed by the VA, an experienced real estate agent can assist you. These loans can be a good option for any person who has served or is serving in the military, as they often provide loans with more favorable terms than those available to civilians.