A VA loan is a type of home or mortgage loan that originated in the United States for present and past military members which is guaranteed by the U.S. Department of Veterans Affairs (VA). A VA Loan is a home or mortgage loan that grants both present and past military personnel the right to purchase a primary residence in the United States. A VA Loan is currently being offered to veterans, active duty personnel, reservists/National Guard members, and most surviving spouses. The Department of Veterans Affairs (VA) does not lend the money for VA loans; the Department of Veterans Affairs (VA) will only offer to back the loans that are made by private lenders to the past or present military personnel who qualify.
A VA Loan has a number of great benefits that are offered for past or present military personnel that are unlike some traditional or conventional mortgage loans. Here are just a few of those benefits that have been taken directly from the Veterans Affairs website. A VA Loan can help military personnel purchase a home at competitive rates and in most cases, without having to come up with a down payment or obtain private mortgage insurance. A VA Loan has certain limits which is decided by the Department of Veteran Affairs, in regards to the amount the potential home buyer may need for closing costs and origination fees that most lenders will charge a VA Loan borrower. A VA Loan will usually allow the veteran the right to prepay the VA Loan without a prepayment penalty. Finally, a VA Loan can usually be refinanced through the Streamline Refinancing Program, which will allow past or present military personnel to refinance their VA Loan with little or no expense to them. A potential home buyer will want to consult with a real estate representative who can point them in the right direction in finding out further information about a VA Loan.