| Veterans Affairs Loan: |
| The U.S. Department of Veterans Affairs guarantees mortgage loans for veterans and service persons. These qualified individuals are allowed to get home mortgage loans with good borrowing terms and usually with little or no down payment. |
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| To be eligible for the VA loan there are certain requirements. For instance, you must have served 180 active days service since September 1940. If you enlisted after September 7, 1980 you need to have two years of service with a proof of service or a certificate of eligibility from the Department of Veterans affairs. |
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| Veterans are not permitted to pay points to the mortgage lender on these types of mortgage loans. You can prepay a VA loan without penalty, and the residential loan is assumable; in other words, the property buyer can take over the mortgage if the property is sold. This feature can save a buyer significant amounts of money in mortgage interest payments. The buyer still needs to satisfy the requirements of the current mortgage banker. The buyer takes over payment on the existing mortgage and pays the difference between the mortgage balance and the selling price. It is a good idea to clarify whether the mortgage home loan you are considering is assumable. |
