Is It True That Closing Costs And Down Payments Are Zero For VA Loans

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• Publié par: garydavidwilliams
• Publié le: 23 mars 2016
• Nombre de lectures: 0
• Langue: English

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In 1944, the U.S. Government created the VA Home Loan
Program in accordance with the GI Bill. The program’s concept
is to enable veterans of the United States military to establish
homeownership upon discharge from the service. In 2015, there were $427 billion worth of outstanding loans,
cites Inside Mortgage Finance. However, many veterans today
do not understand how the program works and some are not
even aware that they qualify for home loans through the VA. Therefore, it is very important to outline some of the basic
guidelines and requirements for VA home loans. THE FINANCING QUESTIONMany veterans who are unaware
of how home loans through the
VA work believe the financing
comes directly from the VA.
This is not the case. The Department of Veterans
Affairs only guarantees the
loan, and mortgage finance
companies provide the actual
dollars for the loan.A home loan through the VA is
similar to an insurance policy.If a veteran goes into default
status on a mortgage, the VA
guarantees it will pay a certain
amount of the loan.