What Is A VA Loan?

A VA loan is a type of mortgage loan that is guaranteed by the United States Department of Veterans Affairs (VA) and is designed to help active-duty military members, veterans, and eligible surviving spouses become homeowners. The VA loan program offers several advantages over conventional mortgage loans, including the ability to purchase a home with no down payment, lower interest rates, no private mortgage insurance (PMI) requirement, and more flexible credit and income requirements.

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To be eligible for a VA loan, you must be a veteran, active-duty service member, or an eligible surviving spouse, and meet certain service requirements. The VA loan program is intended to help military personnel and their families achieve the American dream of homeownership. Here are some common rates and terms for VA loans:

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Interest Rates

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• Interest rates on VA loans are typically lower than those of conventional loans, but they can vary depending on the lender, the borrower's credit score, and other factors.

• The interest rate can be fixed or adjustable, with the fixed rate typically being higher than the adjustable rate.

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Loan Terms

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• VA loans can have a term of up to 30 years, with most borrowers choosing a 15 or 30-year term.

• There is no penalty for paying off a VA loan early.

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Fees

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• VA loans require a funding fee, which is a percentage of the loan amount and varies depending on the type of loan, the borrower's military status, and the down payment amount.

• VA loans also have closing costs, which can include appraisal fees, title insurance, and other fees associated with the loan.

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Eligibility

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• To be eligible for a VA loan, you must be a veteran, active-duty service member, or eligible surviving spouse.

• You must also meet certain service requirements, such as serving for a minimum period of time.

• You will need to obtain a Certificate of Eligibility (COE) from the VA to apply for a VA loan.

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To discover if a VA is the right lending option for you give our team at NW Alternative Mortgage a call at 503-343-7999 today!