VA LOANS

VA Loans

There are more than 29 million veterans and service personnel eligible to receive benefits from the Department of Veterans Affairs. One such benefit is mortgage financing or a VA Loan, which is often a viable option for eligible buyers. The Department of Veterans Affairs, or VA, does not actually make mortgage loans, but instead guarantees them. By providing this guaranty, the mortgage lender's risk is minimized and the lender is protected in the event of foreclosure. 

There are a number of advantages a VA home loan provides, including no down payment and no mortgage insurance required. In addition to buying a home, a VA loan can be used for other purposes including:

VA requirements include certain eligibility and conditions of service, good credit rating and sufficient income. A valid Certificate of Eligibility is also required which verifies service and discharge. Home buyers must also certify that they intend to live in the property they purchase. Most mortgage lenders offer VA financing and it's always best to ask for complete details on what's available and any other requirements.

Like most other home loans, interest rates will generally follow the market and are consistent with conventional mortgage rates. A one-time funding fee is required on VA loans and will run anywhere from 1.25% to 3%, however the typical fee is around 2%. Homes must be appraised by a qualified VA appraiser to estimate the value of the property. This appraisal is not a home inspection and will not guarantee the condition of the home - the buyer is responsible for seeking advice regarding the condition of the property.

Eligible VA buyers can consult http://www.homeloans.va.gov/ for more complete information on VA loans or they can contact their local VA regional loan center. For additional questions regarding home financing, please don't hesitate to contact me. I can provide information on the wide variety of home financing products that GMAC Mortgage has available.


GMAC Mortgage is one of the nation's leading mortgage lenders, offering you comprehensive mortgage financing and services that start before you find a home and continue long after you've made settlement.