VA Loan Information

VA loans are home loans available to consumers who have served or are presently serving in the U.S. military for purchase of a primary residence. While the Veterans Administration (VA) does not lend money for VA loans, it backs loans made by private lenders (banks, savings & loans, or mortgage companies) to veterans who qualify.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program, but will need a Certificate of Eligibility from the VA to prove to the lender they are eligible for a VA loan. Lenders can also get the certificate on behalf of their clients. Eligibility rules for VA loans are on the U.S. Department of Veterans Affairs Web site .

There are many, as taken directly from the Veterans Administration site:

• No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Buyer informed of reasonable value.
• Negotiable interest rate.
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty.
• For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
• VA assistance to veteran borrowers in default due to temporary financial difficulty.

According to the 2009 VA County Loan Limits for High-Cost Counties, there is "...no maximum that an eligible veteran may borrow using a VA-guaranteed loan." However, there are county limits that must be used to calculate VAs maximum guaranty amount for a particular county. Generally, an eligible veteran can get a loan up to $417,000 with no money down and in some high-cost places, up to $625,500. These figures follow conforming loan limits allowed by Fannie Mae and Freddie Mac.

Yes. It is a loan and needs to be repaid just like any other loan. For more information on VA loans, visit the U.S. Department of Veterans Affairs Web site.