The Veterans Administration home loan guaranty benefit helps you buy, build, repair, retain or adapt a home. VA home loans are provided by private lenders such as banks and mortgage companies, with VA guaranteeing a portion of the loan. This gives the homebuyer more favorable terms.
Who’s eligible
Veterans;
Active duty personnel;
Current or former reservists/National Guard members; and
Some surviving spouses.
The benefits
Purchase a home at a competitive interest rate often without requiring a down payment or private mortgage insurance, which gives you more savings;
Cash-out refinance options allow you to take out cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements;
If you have a service-related disability, you may qualify for waived funding fee, reducing closing costs;
Borrowers can often refinance to a lower rate within the VA program without re-qualifying for the program; and
You can reuse the benefit.
How to apply
You can apply for a VA loan with any mortgage lender that participates in the VA home loan program with a certificate of eligibility from VA.
There are limits that determine the VA’s maximum guaranty amount for a loan. Generally, you can get a loan up to $417,000 with no money down and up to $1,094,000, in some high-cost places.
For More Information: USA TODAY