Veterans should consider some of the advantages of VA home loans:

· Most important consideration, no down payment is required in most cases.

  • Negotiable interest rate.
  • Closing costs comparable – and sometimes lower - than other financing types.
  • Right to prepay loan without penalties
  • Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.

· 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.

· Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000

· Flexibility of negotiating interest rates with the lender.

· No monthly mortgage insurance premium to pay.

· Seller is allowed to pay all of a VA buyers closing costs

· 15 year loans - 30 year loans

· A choice of repayment plans.

· An appraisal, which informs the buyer of estimated property value.

· New homes, which are appraised before or during construction, are inspected to help ensure compliance with the plans and specifications, used for the appraisal and with VA minimum property requirements. All new houses, regardless of when appraised, are covered by either a 1-year builder's warranty or a 10-year insured protection plan.

· An assumable mortgage, subject to VA approval of the assumer's credit.

· VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.

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