ANSWERS: 1
  • A VA loan is a mortgage loan guaranteed by the United States government and is awarded to American veterans and their surviving spouses. This loan may also be issued to qualified borrowers who were not in the military.

    Goal

    The VA loan was designed to offer long-term financing to American veterans. It helps provide loans to veterans where private loans are not an option.

    Private Mortgage Insurance

    People who acquire a VA loan are not required to purchase private mortgage insurance. Almost all private mortgage loans require that you do this.

    Closing Costs

    The government limits the costs of closing costs. Sometimes this can make the difference between the purchasing of a mortgage working and not working.

    Rates

    Interest rates follow market trends as most loans do, and is controlled by the government.

    Down Payment

    The biggest benefit of a VA loan is that there is no down payment required to receive this loan. This is usually what draws most people to purchasing a VA loan.

    Source:

    Bankrate.com: Mortgages

    More Information:

    Va Loans

    Your Va Benefits

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