VA loans are home mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA), a branch of the federal government that oversees veterans’ benefits. While VA loans are actually fulfilled by private lenders such as banks and mortgage firms, they are protected against loss by the government. Due to this government backing, lenders are able to offer home loans to those who qualify without the customary requirement of a down payment. Additionally, borrowers are not required to pay private mortgage insurance (PMI) under the conditions of a VA loan.
2) Who is eligible for a VA loan?
VA loans are available for veterans of U.S. service or their surviving spouses (provided that they have not remarried). However, not all veterans automatically qualify for the program. As with all other loan programs, applicants must demonstrate that they can provide the income and other qualifying factors such as good credit to afford monthly mortgage payments. To check your eligibility, you can contact a VA-approved lender such as Poli Mortgage Group to learn about the VA eligibility process.
3) What type of home can I buy with a VA loan?
VA loans are available for eligible veterans to purchase existing homes or to build a new home. The VA loan program can also be used to finance a condominium or townhouse unit or to buy a manufactured home if approved by the VA,; manufactured homes purchased under the conditions of the loan must conform to certain requirements.
VA loans are designated to be used for personal occupancy, not investment or rental properties.