Benefits and Features of a VA Guaranteed Home Loan

* No down-payment (although some lenders do require one)
* Equal opportunity for all qualified veterans
* The Buyer is informed of reasonable value
* The Interest Rate is negotiable!
* No Mortgage Insurance Premiums!
* Reduced funding fees with a down-payment of at least 5%
* Ability to finance the VA funding fee
* Closing costs are often lower than other financing types
* An assumable mortgage
* No penalty for prepay!


What are the benefits of a VA loan vs. a conventional loan?

• 100% financing with no mortgage insurance which means your entire interest payment is tax deductible.
• Approval with less than perfect credit and still obtain a quality rate
• When you are ready to refinance a VA loan you can do so through a "streamline refinance". A streamline refinance requires no income, asset, or credit verification, while it is also much cheaper than a conventional refinance because many of the traditional closing costs are waived.

Steps that a Veteran must take in order to obtain a VA Guaranteed Loan

1.  The Veteran must apply for and get a Certificate of Eligibility
2.  The Veteran must select a home and discuss the purchase with the seller or selling agent
3.  The Veteran must sign a purchase contract on approval of a VA Guaranteed Loan
4.  The Veteran must complete a Certificate of Eligibility.                                  5.  The Veteran selects a lender, presents them with their Certificate of Eligibility and completes the loan application
The Lender will determine the Veterans credit, and the VA will have the veterans home appraised.  The lender or the VA will issue a value on the property for loan purposes.
6.  The Veterans loan will be approved if all parties and the lender determine that they are credit and income qualified.
7.  Once the loan has been approved, the Veteran attends the loan closing, signs the note and mortgage. 
8.  The Certificate of Eligibility is returned to the Veterans after explanation of how monthly payments will be made, and after the Certificate has been annotated by the VA.
(This procedure may vary from state to state)

VA Streamline Loan Program

The VA has created an Interest Rate Reduction Loan program called the Streamline Refinance. This provides a way for current VA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan.

An Interest Rate Reduction Loan or Streamline Refinance allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility.

"No Cost" Streamlines let you refinance your mortgage with no out-of-pocket expenses. One option is to let the lender pay the costs in exchange for a higher interest rate. Another option that lets you obtain market rates is to roll the closing costs into the new loan.

Click on the link below for the VA's  Home Loan FAQ page. 

http://www.homeloans.va.gov/lgyfaq.htm