5 Surprising VA Loan Facts
It’s important to understand how a VA loan works. Below are five facts most borrowers don’t know about VA loans. #VA
The VA isn’t the lender The loans are issued by private mortgage lenders (like Vanmar Lending). The VA guarantees that it will pay a portion of the loan amount if VA borrowers’ default. The VA’s guaranty allows you to obtain the loan without a down payment and avoid mortgage insurance.
Isn’t a use-it-and-lose-it benefit If you've already obtained a loan, you can still get another — provided you've paid the existing VA loan off.
You can get a VA loan after bankruptcy or foreclosure Service members and veterans can land a VA loan even if they've been through bankruptcy or foreclosure. And that includes a foreclosure on a previous VA mortgage.
The VA loan fee can be avoided Funding fees range from 1.25% to 3.3% of the loan amount. The fees may also be rolled into the loan. Several types of borrowers are exempt from paying the fee, including veterans with service-related disabilities and many surviving spouses.
No penalty for an early pay off Just making the equivalent of one extra mortgage payment each year can cut years and thousands of dollars in interest charges off your loan.
Contact Vanmar Lending for more information on VA loans.