VA loans are quite different than other types of mortgages. Eligible military homebuyers and homeowners should know what they are entitled to through this program. Here are the most frequently asked questions about VA loans.

1. Veterans Home Loans
Frequently Asked Questions
About VA Loans
http://veteranhomefinancing.com

2. About VA Loans
Even though VA loans have been available
for quite some time, many consumers may
not be aware that they are eligible to obtain
one. Others may not understand what they
are or how they are different than other
types of mortgages. Here are the FAQs:

3. What is a VA loan and who can obtain
one?
A VA loan is a special direct home loan
program that is issued by approved lenders, but
guaranteed by the Federal Government (U.S.
Department of Veterans Affairs). It is designed
especially for veterans or eligible spouses.

4. How do I prove VA loan eligibility?
The VA issues a Certificate of Eligibility which
is a formal VA document that certifies a military
member’s entitlement for a VA loan. This is the
only way to determine a veteran’s eligibility and
entitlement.

5. Does the VA control the mortgage rates
for VA loans?
The VA does not control the mortgage rates for
VA loans. VA mortgage rates are set by the
banks that buy and sell mortgages. Because of
this, VA mortgage rates can be different and
very competitive from lender to lender.

6. Does a VA loan have a maximum loan
amount?
The VA does not set a maximum loan amount on how
much can be borrowed to finance a home. However, there
are limits on the amount of liability the VA can assume. The
loan limits are the amount of funds that an eligible borrower
with full entitlement can borrow without the need for a down
payment. The limits vary by county and depend on the
location of the property.

7. What is the required down payment
when using a VA loan?
In most cases, a VA loan does not require a
down payment when purchasing a home. It is
the only loan program that offers 100%
financing to eligible borrowers.

8. Will I have to pay private mortgage
insurance with a VA loan?
One of the best benefits of a VA loan is that,
even with 100% financing / no down payment,
you are not required to pay monthly private
mortgage insurance.

9. What is a VA funding fee?
VA loans require a VA funding fee as part of
the mortgage. This fee reduces the loan’s cost
to taxpayers since VA loans do not require a
down payment or monthly mortgage insurance.
The funding fee is a percentage of the loan
amount and varies based on the type of loan,
military cateogry, first time or subsequent loan
(cont.)

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borrower, and whether a down payment is
made. The funding fee must be paid at closing;
however, it can be financed with the VA loan.
Certain eligible VA borrowers may be exempt
from paying the VA funding fee.

11. What type of home can I purchase with
a VA loan?
A VA loan can be used to purchase a
residential home, a townhouse or condominium
that you plan to occupy. The residence can be
an existing dwelling or newly built.

12. What else can a VA loan be used for?
A VA loan can be used for refinancing an
existing loan. The current mortgage can be a
VA mortgage or another type of mortgage. VA
loans can also be used to make qualified home
improvements, such as insulation and other
repairs with energy efficient features.

13. Can I refinance a VA loan?
Yes, a VA loan can be refinanced. The Interest
Rate Reduction Refinance Loan (IRRRL) is a
simple, no cash out refinance for an existing VA
loan which requires a minimal amount of
documentation. The VA refinance is a regular
refinance that allows for cash out, as well as,
refinancing a non VA loan to a VA loan.

14. Where can I get more information
about VA loans?
VA loans are offered by VA approved lenders
who can provide additional information. There
is no need to physically visit a VA lender for
more information since nationwide VA lenders
are available online. A knowledgeable lender
who specializes in VA loans will be able to
answer your questions and provide you with

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the best competitive VA loan and rates
available.
Feel free at any time to contact Brian Thomas
with your questions. For more information
about a VA loan or for a free no obligation
quote, click here.