VA

What is a VA loan?

A VA loan is a mortgage offered by banks and other lending institutions that is guaranteed by the Department of Veterans Affairs and made available to military borrowers.  The guarantee protects the lender from loss, and therefore VA loans typically have more favorable and aggressive terms than a typical conventional loan or FHA loan.

What are the benefits of VA loan?

  • No Down Payment – In most situations, veterans who qualify for a VA loan can obtain 100% financing, and therefore no down payment is required.
  • Lower Costs – The VA strictly regulates what costs can be charged to veterans through a VA loan. Thus, VA loans typically have lower costs than other financing options. In addition, VA loans allow for a greater percentage of closing funds to be paid by the seller and also allow the down payment (if there is one) or closing funds to be gifted to VA borrowers.
  • No Monthly Mortgage Insurance – Veterans can realize a significant savings in their monthly payments because the lender does not require the borrower to pay monthly mortgage insurance premiums on a VA loan. Mortgage insurance is typical to most loans where the borrower pays less than 20% down, such as FHA loans, or low-down payment conventional loans.
  • Assumable – Most VA loans are assumable to credit qualifying veterans and non-veterans. This can be a real advantage if you decide to sell your home in the future.
  • Easier to refinance – If mortgage interest rates drop, it is generally easier to refinance a VA loan. The VA offers a special program called an Interest Rate Reduction Refinance Loan (VA IRRRL) which helps veterans to refinance through a streamline process.

Who is eligible for a VA loan?

Typically, most veterans and military members are eligible for a VA loan. You can view the eligibility rules from the Department of Veterans Affairs here.

How do I apply for a VA loan?

All Western Mortgage is an approved lender, experienced in originating VA loans for purchasing a new home or for refinancing your current home. You can contact us 702.277.4141 to get the process started or just to answer any initial questions you may have.