VA Mortgages

1. The Veterans Administration (VA), a federal agency, provides a federal guaranty and establishes program guidelines.

2. Eligible veterans with honorable discharges or eligible spouses of veterans who died while in military service may obtain a VA loan.

3. A veteran who has previously obtained a VA loan may be eligible for another VA loan, even if the first loan is not paid off. Some down payments may be required. If the previous VA loan has been or will be paid prior to closing on the new loan, full VA entitlements can be restored.

4. Purchase or refinance transactions for owner-occupied properties are eligible for financing.

5. Single-family detached homes, townhomes, approved condominiums and planned unit developments, and multiple units of up to four living units are eligible for financing.

6. The discount point can now be paid by the seller or the buyer. The veteran can pay points on refinancing this home or if he’s the general contractor, for a newly constructed home.

7. A one-time VA funding fee, which can be financed in addition to the mortgage amount, is required.

8. The home must meet VA standards for property conditions.

9. VA loans are assumable at the initial loan term.

10. There is no prepayment penalty for a VA mortgage