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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.
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