What is a VA Home Loan and what can it do for you?
The VA home loan program was created in 1944 when the Servicemen’s Readjustment Act added a package of benefits to eligible service members. It is administered by the US Department of Veterans Affairs (VA). The VA does not actually lend money; it reimburses VA mortgage lenders if borrowers default on VA home loans. Because this guaranty reduces the risk to lenders, VA loans are widely available at reasonable cost. VA mortgage lenders offer a variety of home loans designed to meet many needs, including:
Build a single family home
Buy a single family home, a condominium unit in a VA-approved development, or a co-op unit
Repair, renovate or upgrade your primary residence
Refinance a mortgage
Buy a manufactured home and/or lot
Make energy-efficient improvements like solar heating or cooling systems
VA home loans are especially suitable for eligible veterans (and their families, when applicable) who need to finance more than 80 percent of a home’s appraised value or purchase price, because mortgage insurance is not required. Feel free to contact me to discuss the advantages and drawbacks that you should be aware of before choosing a VA mortgage, and what you need to know before applying for one.