VA Loans

What is a VA Mortgage?

In 1944, shortly before the end of World War II, the United States government created the VA loan program to help active-duty and returning veterans, as well as their families, finance their first home purchase affordably.

Most VA Loans are issued by approved private lenders such as Forthright Funding and a portion of it is guaranteed by the federal government for eligible service members. These loans additionally come with less stringent underwriting requirements than conventional mortgages.

The most significant benefit of the VA loan is that the borrower is able to purchase their home without needing to put any money down. That means the loan can be financed 100%! Additional benefits related to the VA loan program can be found below.

Who is Eligible for a VA Loan?

• Veterans
• Active-Duty Service members
• Reservists/National Guard members
• Surviving spouses of veterans whose death was service related

What Are the Benefits of VA Loans?

As a way to show the government's appreciation for those who served our country, whether in the past or present, VA Loans come loaded with benefits. Here we discuss the main benefits of the VA Loan program:

• No Down Payment – Conventional loans usually require from 5-20% down. FHA loans generally ask for 3.5% down. But buyer-friendly VA Loans continue to offer 100% financing to eligible home buyers.
• No PMI – Buyers who finance 80% or more of their purchase usually have to buy private mortgage insurance (PMI). Not VA buyers. VA loans are exempt from PMI requirements.
• Relaxed credit standards – Borrowers don’t need perfect credit to be eligible for VA financing.
• Competitive interest rates – VA loan rates fluctuate based on the market and buyer, but are generally more competitive than other loan programs.
• No prepayment penalties – The VA loan program is exempt from prepayment penalties; a fee that is sometimes charged to borrowers who pay off their loans early.
• Up to 100% Loan to Value Cash out – VA loans have the highest loan to value for cash out; up to 100%. This is especially valuable when home values aren’t as strong as they should be.
• VA Streamline Refinance – Refinancing a VA loan has never been easier. No appraisal needed, no credit score requirements and no income documentation. Refinance to today’s currently LOW interest rates with a VA Streamline Refinance Loan.