VA Loans

The more you know about the home loan program, the more you will realize how little “red tape” there really is in getting a VA loan. These loans are often made without any down payment at all. Aside from the veteran’s certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing and the Lender Appraisal Processing Program (LAPP), as more and more lenders are now, a buyer’s loan can be processed and closed by the lender without waiting for VA’s approval of the credit application or for VA to review the appraisal.

More than 27 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:

• Most important consideration, no down payment is required in most cases.

• Loan maximum may be up to 100 percent of the VA-established reasonable value of the

property. Due to secondary market requirements, however, loans generally may not exceed $359,650.

• Flexibility of negotiating interest rates with the lender.

• No monthly mortgage insurance premium to pay.

• Limitation on buyer’s closing costs.

• An appraisal which informs the buyer of estimated property value.

• Thirty year loans, with a choice of repayment plans

5 Simple steps to getting a VA Loan

1. Apply for Certificate of Eligibility

2. Decide on a home the buyer wants to purchase, and fill out a contract.

3. Order appraisal from VA (lender usually does this)

4. Apply to a mortgage lender for the loan

5. Close the loan & buyer moves in