There are many different types of mortgage loans available to homebuyers with options to suit various needs and financial situations. One great option available for active and veteran service personnel and eligible spouses is a VA loan. A VA loan is available through a program established by the US Department of Veterans Affairs. These loans provide substantial benefits to borrowers including no down payment (100% financing), no mortgage insurance, lenient credit requirements and limited lender closing costs.
Most VA loans are provided through private lenders, such as banks, credit unions or mortgage companies. But the VA guarantees a part of the loan in the event of loss due to default or foreclosure and thereby allows the lender to provide more favorable terms including competitive interest rates. A VA-guaranteed loan can be used to purchase a single-family home, multi-family properties up to 4 units, a townhome or condo, or even to build a home. There is no home price limit as long as the buyer is able to afford the home and the property appraises for the purchase price. The appraisal will also detail any specific items requiring repair to meet VA minimum property requirements.
A VA loan is a valuable benefit available to our service members as a token of gratitude for their service. At Petriello Law, we have experience working with buyers using VA loans and other financing options. We are happy to share our expertise in order to help you with your next purchase. Reach out to our office today to speak to an attorney on any real estate matter.