A VA loan is a mortgage provided through a U.S. Department of Veterans Affairs program available to active and veteran service personnel and their surviving spouses. It is backed by the federal government but issued through private lenders.
A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA). With the help of VA loans, veterans, service members, and their surviving spouses can buy homes with little to no down payment or private mortgage insurance and normally get a competitive interest rate.
The VA does not issue VA loans, but they do determine who qualifies for one and which lenders issue them. There are several VA loans, and they pose less risk to lenders because a government agency backs them.
VA mortgages are considered non-conforming loans because they don't satisfy the policies of conventional lenders Fannie Mae and Freddie Mac. However, this permits more flexibility for clients to qualify because of their easier credit score prerequisites. In addition, they offer many advantages over conventional loans, including lower interest rates, more lenient borrowing needs, and no down payment due at closing. VA loans also never have monthly mortgage insurance.
VA loans are arguably the most potent loan option on the market. They come with big-time benefits, including a $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines, and the industry's lowest average fixed interest rates. However, every Veteran buyer's situation is different, and going over your loan options with a home loan specialist can help ensure you make the best financial decision possible.
VA loans help Veterans and service members become homeowners without spending years building great credit or saving for a significant down payment. They've been a lifeline for younger homebuyers in particular. This hard-earned benefit program continues to fulfill its original mission nearly eight decades after its creation.
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Effective Date: 9/1/2021
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Pioneer Mortgage Funding Inc. is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Pioneer Mortgage Funding Inc. is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Pioneer Mortgage Funding Inc. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Pioneer Mortgage Funding Inc. is not acting on behalf of or at the direction of HUD/FHA or the VA.
