A VA loan is a mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. VA loans offer up to 100% financing on the value of a home, which sounds great! But, what does it actually mean? And is it actually great?
Basically, 100% financing means you pay zero costs up-front, meaning your biggest money spent will come from closing costs. So is it great? Yes, it’s pretty great to save up-front. Additionally, when compared to other types of loans, VA loans tend to be more affordable monthly as they do not require monthly mortgage insurance fees! Getting these do come with a few extra qualifications; borrowers must present a certificate of eligibility to the lender. This establishes their record of military service.
If you think you may qualify for a VA Loan, or have any other questions, we’d love to hear from you!