I'm Looking For A Loan Backed By VA

These types of loan offer better rates than other types of loans.

VA loans are often made without any down payment at all. The loan amount may be up to 100 percent of the VA established value of the property. However, loans generally may not exceed $359,650.

VA Loans offer a certain degree of protection to borrowers. The home must appraise for at least the sales price or the borrower is not obligated to complete the transaction. The VA guarantees the loan so there is not need for private mortgage insurance. Also, the VA limits the types of closing costs the borrower has to pay. All in all, there are many benefits the borrower of VA guaranteed loans.

When you take out a VA loan you will need to provide your lender a couple of additional documents that you would not need if you were taking out a VA loan. You will need a Certificate of Eligibility from the VA confirming your VA benefits. You will also need to give the lender a copy of your DD-214, proving the date, and type of your discharge from the military.

VA loans allow for excellent terms for 100% financing: there is no minimum credit score requirement, there is no monthly mortgage insurance requirement, and you can negotiate up to a 6% seller concession.

For 2007, the VA will back loans up to $417,000 including the VA funding fee.

» DISCLAIMER: The information contained in this article on 'I'm Looking For A Loan Backed By VA' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.