(Source: The Mortgage Reports)
“Low VA mortgage rates and common-sense underwriting have helped boost VA lending to an 18-year high. For today’s military borrower, for purchase and for refinance, the VA loan is often the most sound, more cost-effective mortgage program available.
What is a VA Loan?
The VA loan is a mortgage program for veterans of the U.S. military. Structurally, a VA loan resembles most other loan type — as a homeowner, you borrow some amount from the bank, then make monthly payments until the borrowed amount is paid-in-full.
However, the VA loan bears distinct advantages over its conventional and FHA mortgage cousins.
The first advantage of VA loans is that they require no money down on a purchase. Home buyers using a VA loan can finance up to 100% of a home’s purchase price so long as the loan size is within the VA loan limits for the given area.
VA loan limits are typically $417,000 but may range up to $729,750 in “high-cost” areas such as northern Virginia and Potomac, Maryland.
A second advantage of VA loans is that monthly mortgage insurance is never required. No matter how large or small your downpayment, you do not pay monthly mortgage insurance with a VA loan. This is in stark contrast to the FHA, for example, which has raised its mortgage insurance requirements four times in four years…”
Read more at The Mortgage Reports