A VA Loan is Designed to offer long-term financing to veterans. VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.

VA Loans are designed to reduce the risk for lenders. If for some reason a borrower defaults on a mortgage, the government will pay a portion of that loan to the lender.

Downpayments and private mortgage insurance are generally not required for VA Loans. Plus, all other fees (i.e. closing costs) are limited. This is because the Department of Veterans Affairs limit lenders on charging other excess fees.

If a VA loan borrower sells their house, another veteran buyer can assume the loan.

VA Loans are mainly for primary residences. One can’t buy any sort of investment property or vacation home.

There are VA property requirements. Anything from non-permittted home improvements, working farms or outbuildings can be an issue for VA lenders.

IF you are a veteran looking to finance your home, ArmCor is proud to serve you!