The VA Home Loans are loans designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry) with zero down payment. As the name suggests, it is the loan guaranteed by the U.S. Department of Veterans Affairs (VA).
Compared to FHA and Conventional mortgage loans, VA loans provide 100% financing on loan amounts up to the purchase price or reasonable value of the property being bought, whichever is less. Moreover, borrowers don't have to pay mortgage insurance premium even if they opt for 100% financing. Thus, making it easier for the veterans to qualify for a larger loan amounts. The VA loan will also finance the VA funding fee which 3.3% thus offering 103.3% financing. If you are American veteran, then this might be the right loan program for you.
Eligibility and Qualification Requirements:
VA Certificate of Eligibility (COE)
Credit scores as low as 580 may qualify
Provides financing on owner occupied home
100% financing for the value of the home as well as the VA funding
No private mortgage insurance premium requirement
Don't have to be a first-time homebuyer
Reuse the benefit
VA-backed loans are assumable, as long as the person assuming the loan qualifies