If you are a veteran of the Armed Forces, an active duty servicemember, or the surviving spouse of a veteran, you may be able to qualify for a mortgage that is guaranteed through the US Department of Veterans Affairs. These loans provide unique benefits that are specific to veterans and servicemembers, and they generally offer simpler qualifications, better terms, and lower interest rates than conventional mortgages.
The VA loan is backed by the federal government, which protects the lender in the event that the borrower defaults. This assurance removes many of the traditional barriers experienced by potential homeowners who are trying to secure a mortgage and realize their dreams of homeownership. The loan originated with the GI Bill of 1944 that was designed to assist soldiers and their families following World War II, and it continues to make it simpler for veterans to become homeowners.
VA loans are different from conventional home loans in two primary ways:
They make it simpler for veterans in remote areas to secure financing. In many locations, private lending is unavailable and commutes to larger cities can be difficult. VA loans help to circumvent this.
VA loans do not require down payments, which makes homeownership more accessible for veterans and their families.
The benefits of VA loans are many. They offer 100% financing on both purchases and refinances, and they do not require private mortgage insurance (PMI) because they are fully backed by the federal government. The interest rates associated with VA loans are fixed and highly competitive as well. VA loans are assumable, which means the benefits can be passed to non-veterans when the veteran homeowner chooses to sell. Finally, the veteran has the option of financing the down payment, and while closing costs and funding fees still apply, removing the requirement for the initial down payment opens many doors for veterans and servicemembers who may not meet the guidelines for homeownership.
It’s important to remember that the VA sets all the standards of qualification and the terms of your mortgage, but private lenders provide the actual funding. To do this, EZ Lending Solution requires a Certificate of Eligibility from the VA, which can be obtained through the VA website.
EZ Lending Solution can help you navigate the VA loan process and ensure that you have access to the funding, interest rates, and monthly mortgage payments that best suit your needs.