VA loans sometimes sound a little too good to be true. How do these mortgages offer a competitive rate with no down-payment? It boils down to how much of the loan the lender is guaranteed to be re-paid. With a Commercial or FHA mortgage the down-payment or private mortgage insurance acts as this guarantee. A VA loan is different because a large percentage of the loan is guaranteed by the federal government. This guarantee gives lenders the security necessary to lend without the necessity for money up front or mortgage insurance. Although VA loans have some limitations, they present a remarkable opportunity to finance a new home. If you’re looking into obtaining a VA loan, feel free to give me a call or fill out our online application and we will see if there is a VA loan that is the right fit for you.
Senior Mortgage Consultant
Rock River Financial