The VA guarantees the home loans that are made by lenders but does not provide the funds or purchase the mortgage from the lender.
When the home securing the loan is sold and the loan paid off, the borrower’s entitlement is restored for a future transaction. Veterans who had a VA loan in the past may still have remaining entitlement to use for another VA loan.
VA does not limit loans, only a maximum that can be borrowed with zero down payment.
The VA Interest Rate Reduction Loan (IRRL) enables refinancing.
Borrowers must be credit worthy and meet the lender’s criteria.
The surviving spouse, co-borrower or deceased borrower’s estate assumes responsibility for paying off the mortgage.
Usually, but not always. VA funding fees, in addition to the lender’s fees, may make the VA loan the most expensive option.
The property can be a condo, townhome, or manufactured home. For condos, must ensure that the building is VA approved first.
VA-purchasers may be represented by, but cannot compensate, buyer’s representatives.
