Four Important Facts About VA Loans
VA loans are mortgage loans that are guaranteed by the U.S. Department of Veteran Affairs. Such loans allow veterans more than 100% financing and often ease requirements, such as no private mortgage insurance being required. There are a lot of details about VA loans that the average buyer is simply not aware of, and the best loan officer Las Vegas residents have available to them can help you navigate those nuances.
VA Loans Are Reusable
If you are eligible for a VA loan, that eligibility does not expire. You can use it over and over again. The caveat is that you have to pay the loan back or be in the process of doing that. However, it is possible to get a VA loan even if you have had a foreclosure.
Loans Are Not Issued by the VA
The VA does not issue mortgage loans. It guarantees them. What does that mean for you? It means that you have the freedom of every other consumer to choose your loan officer, shop loans and so forth. Having the VA be there to secure your loan just makes it easier to get the loan you want.
Mortgage Insurance Is Not Required
Mortgage insurance is generally required when you put less than 20% down on a mortgage. This would increase your monthly obligation. But VA loans are designed around no down payment and so that requirement is waived.
VA Loans Never Have Prepayment Penalties
Borrowers who put less than 20% down often have to deal with prepayment penalties. This ensures that the bank makes a certain amount over the term of the loan. But with a VA loan, you can pay as much as you want as often as you want in order to pay off your mortgage.