VA Mortgage Loans

VA Mortgage Loans
VA loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs.
VA guaranteed 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 loans.

Other benefits of a VA loan include: 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.

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 presented to the lender to qualify for the loan. First Heritage Mortgage is a fully approved VA lender.

VA loan guidelines allow for 100% financing up to the VA lending limit established by the VA. The eligible veteran can borrow up to 1.5 million using a Jumbo VA loan but they have to put 25% of the difference between the sales price and the VA funding limit into the loan as a down payment. Please check with your loan officer for the current VA loan limit and for any additional information on VA loans.