A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). VA Home Loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide home buyers with more favorable terms.
VA Loan Pros:
- Probably the biggest benefit to homebuyers is being able purchase a home with as little as $0 down and no mortgage insurance!
- VA mortgage loans have less stringent credit requirements than conventional loans.
- If the house is later sold, the loan can be transferred to the new buyer.
VA Loan Cons:
- The buyer must pay an upfront “funding fee”. Click here to see the fee percentages.
If you plan on purchasing a condo with a VA loan, your options are pretty limited. The condo complex needs to be pre-approved by the VA and their requirements are pretty strict. Click the link below to see what condo’s are currently for sale that are VA approved.