100% Financing!?!
Posted by Paul Caparas on Wednesday, February 11th, 2009 at 2:25am.A Blog about VA Loans by Shelly Heimer with The Lenders Group
VA guaranteed loans are made by lenders and quarantined by
the U.S Department of Veterans Affairs (VA) to eligible veterans for the
purchase of a home. The guaranty means the lender is protected against loss if
you fail to repay the loan.
VA does not require a down payment and the borrower usually receives a lower interest rate than is ordinarily available with other loans.
Other benefits of a
VA loan include:
· Negotiable interest rate (IRRL)
· Closing Cost Comparable – sometimes lower –than other financing types.
· No private mortgage insurance
· Right to prepay loan without penalties
· Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
· Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.
Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be obtained to qualify for the loan.
If you are thinking about buying a home and have served in the Armed Forces call me (another veteran) to see if you qualify.
Shelly Heimer
619-574-4880 ext. 147
(please mention PaulCaparas.com)
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