2006-06-20 11:16:36 · 6 answers · asked by oneof7men 1 in Business & Finance ➔ Personal Finance
A Veteran's Administration, or VA loan, is the same as any other loan and made by the same lenders who make other loans. The VA only guarantees that whoever makes the loan is safe and cannot lose money in the event that you default on the loan. It is the same as any other mortgage, whether FHA or conventional. VA does make it possible for the borrower to not make a down payment when purchasing a home. Eligibility requirements of honorable discharge, length of service, etc; must be met by the borrower. Credit worthiness is the same as any other type of loan. You cannot have an unlimited amount of VA eligibility; it varies by region. There is a dollar ceiling on how much borrowing is allowed per veteran. A VA guaranteed mortgage can be repaid and the borrower's eligibility is renewed up to that dollar amount. Otherwise, it is just like any other mortgage.
2006-06-20 11:30:54 · answer #1 · answered by steven s 2 · 0⤊ 0⤋
Conventional bank loans normally require 20% down to close. Conventional loans normally do not require mortgage insurance since you have a significant interest in the home that you don't want to lose.
V.A. Loans require about 3% of purchase price to close. You must be a member of the active military, retired from the military, or honorably discharged.
V.A. loan payments will include a piece of mortgage insurance that you pay, so that if you default on the loan, V.A. will pay the bank the balance you owe, receive title to the property, evict your non-paying behind, and sell the home to another buyer.
Hope this helps.
2006-06-20 18:46:43 · answer #2 · answered by DaMan 5 · 0⤊ 0⤋
They are both loans made by the bank. What make a V.A. loan different is that a US military veteran with an honorable discharge is qualified and can get his/her loan guaranteed by the Veterans Administration, which means if the veteran defaults on the loan an does not pay, the bank gets it's money from the VA and turn the home over to the VA.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-06-20 18:38:55 · answer #3 · answered by Skip 6 · 0⤊ 0⤋
V.A. Loans are for people that have served in the military. Home loans are just that HOME loans
2006-06-20 18:21:23 · answer #4 · answered by catmanbigwil 4 · 0⤊ 0⤋
Same as Laurie and also V.A. Loan usually has a 3% down and sometimes no % down at all.
2006-06-20 18:21:04 · answer #5 · answered by Loo 3 · 0⤊ 0⤋
To qualify for a VA loan you have to have served in the military.
2006-06-20 18:19:52 · answer #6 · answered by Laurie D 4 · 0⤊ 0⤋