VA

Considering a VA Loan


What is a VA Loan?

Lenders make VA-guaranteed loans to eligible veterans for the purchase of a home. The loans are guaranteed by the Veterans Administration (VA) for eligible veterans who wish to purchase a home. If you fail to repay the loan, the lender is protected by the guaranty. Generally, VA guaranteed loans do not require a down payment, and the borrower usually receives lower interest rates than other types of loans.

What Are the Advantages of VA Loans?

Among the other benefits of a VA loan are:

  • There is no requirement for private mortgage insurance.
  • Loans may be prepaid without penalty.
  • Upon selling a home, the buyer can assume the mortgage.
  • For veterans in financial difficulty or at risk of defaulting on their loans, counseling and assistance are available.

Despite no requirement for mortgage insurance, the VA charges a funding fee in order to issue a guarantee to a lender in the event of a borrower default. Fees may be paid in cash by the buyer or seller, or they may be financed as part of the loan amount.

It is possible to use a VA loan to purchase a home, build a home, or even improve an existing residence with energy-saving features such as solar panels or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors, and other energy-efficient upgrades approved by the lender and VA.

To qualify for the loan, the VA must provide a Certificate of Eligibility to the lender.

Questions about VA loans? Contact Omni today at (603) 893-6616!

Contact Us

Mortgage Questions?

Do you have a question regarding a mortgage program?

Contact Information

Share by: