CHAPTER 9 VA Loans
As a veteran, you have special benefits when it comes to buying a home, whether it’s your first time as a homeowner or you are sizing up to meet the needs of your growing family or sizing down as an empty nester. Veterans like yourself have access to resources offered by the U.S. Department of Veterans Affairs, including VA home loans and VA-backed home loans which can be used to help you buy, build, or even improve or refinance a home.
WHAT IS A VA LOAN?
A VA home loan is a mortgage issued by a traditional private lender, but partially guaranteed by the U.S. Department of Veterans Affairs. VA loans are not funded by the VA itself. They are not direct loans from the government to you, the veteran. VA loans are offered by U.S. banks, credit unions, and mortgage lenders to veterans and eligible surviving spouses. The VA also does not set mortgage rates for VA loans. Those rates are set by each individual lender but are typically lower than conventional mortgage rates by 25 basis points (.25%). Since the rates vary, you can shop around and choose the lender with the rates and terms that are best for you. Applying for a VA-backed mortgage is much like applying for any other home loan in that you will still need to provide proof of income and meet any debt-to-income guidelines or credit score required by the lender. 72
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