U.S. DEPARTMENT OF VETERAN’S AFFAIRS (VA) LOAN PROGRAM

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VA guaranteed mortgage loans are made by lenders and guaranteed by the U.S. Department of Veteran 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. In most cases, no down payment is required on a VA guaranteed loan, and the borrower usually receives a lower interest rate than is ordinarily available with other types of loan program.

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.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

VA Loan Benefits Include: Negotiable interest rates, closing costs that are comparable to, and sometimes lower, than other mortgage financing types, no private mortgage insurance requirement, the right to prepay your loan without penalties, a mortgage can be taken over (or assumed) by the buyer when a home is sold, counseling and assistance is available to veteran borrowers having financial difficulty or facing default on their loan.

Vets 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 presented to the lender to qualify for the loan.

Have Questions? Need Help? Sunset Mortgage of Alabama would be honored to guide you through the process. We believe every Veteran deserves our thanks – and the home of their dreams.