A VA loan is a home mortgage loan insured by the US Department of Veterans Affairs, available to most US veterans and other classes of eligible military personnel. It allows up to 100% financing, never requires mortgage insurance, and carries flexible underwriting guidelines. VA mortgage rates are often the lowest of all available loan types. VA Loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and are issued by qualified lenders such as VA the Fairway.

This loan program was created in 1944, when the United States government sought a way to help veterans returning from World War II establish credit and a strong financial foundation. This sweeping legislation was a part of the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. By offering lower interest rates, less stringent credit standards, and not requiring a down payment, the VA Loan Program has played a critical role in leveling the playing field for those who have served our country to establish wealth after war.

Nearly 75 years later, this government-backed program has helped more than 22 million Veterans, active duty service members, and their families to purchase a home or refinance their mortgages in a lending climate with tougher down payment and credit requirements.

We at VA the Fairway encourage you to take some time to learn more about the particular benefits that are available through the VA Home Loan. For more information or if you would like to see if you qualify for a VA loan, contact our experts today at (888) 301-3465.

VA Loans vs. Other Common Loan Programs

Regulations and Fees

Should the borrower default on the loan, the lender is protected. With this security, the lenders are able to offer loans with better terms and conditions than with conventional loans.

Loan Limits

Veterans, active service members and select spouses that qualify may purchase a home worth up to $548,250 without putting any money down in most parts of the country. In some higher cost counties across the country the loan limit may be higher. To find out the VA Loan Limit in your area, please give us a call on our toll-free phone number at (888) 301-3465.

Funding Fees

There is a VA Funding Fee associated with each VA Home Loan. This fee goes directly to the Department of Veterans Affairs to make sure that the program is able to keep running for future military home buyers, thus ensuring that there will not be any additional burdens for tax payers and veterans. The fee varies depending upon the borrower’s particular circumstances and may not apply to those with certain service connected disabilities. If you are using your VA Home Loan benefit for the first time, the funding fee is typically 2.3 percent of the loan amount of the home. For additional uses the fee is 3.6 percent. This fee may be rolled into the borrower’s total loan amount. You will not be required to pay a funding fee if any of the below apply:

• Veteran receiving VA compensation for a service-connected disability.
• Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay.
• Eligible Surviving spouse of a Veteran who died in service or from a service-connected disability.

Additionally, the VA limits closing costs that can be charged for veterans and also allows sellers to pay most of those expenses. It is not unusual for VA borrowers to purchase a home with no money due at the time of closing.