VA Loans

Many veterans 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 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. The most important consideration is that 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 $240,000 (there are some JUMBO VA loans that, WITH a down payment will exceed this limit).

No monthly mortgage insurance premium to pay; however a VA Funding Fee is added onto the loan balance. There is a limitation on buyer's closing costs.

For most loans for new houses, construction is inspected at appropriate stages to ensure compliance with the approved plans, and a 1-year warranty is required from the builder that the house is built in conformity with the approved plans and specifications. In those cases where the builder provides an acceptable 10-year warranty plan, only a final inspection may be required.

This is an assumable mortgage, subject to VA approval of the assumer's credit. The veteran has a right to prepay loan without penalty.