QandAs: Loans

What is a VA Mortgage?

Answer:
VA mortgage loans are available to veterans and active military personnel.

Since mortgage lenders that offer VA mortgages are insured by the Veteran's Administration, qualifying for this type of home loan is easy. VA mortgage are not a requirement for veterans and active military. However, the benefits of this mortgage loan are huge. For starters, VA home loans do not require a down payment.

This is perfect for homebuyers with little cash savings, and for buyers who want to use the extra money for home improvements. VA mortgage loans are guaranteed up to $350,000, which is a nice bonus considering that the average home price in many real estate markets have nearly doubled within a short timeframe. Plus, private mortgage insurance is not a requirement for VA loans.

There are different types of VA mortgages. Borrowers can choose a fixed rate VA home loans or an adjustable rate VA home loan. Fixed rate mortgage loans are a smart choice because the interest rate and monthly payment remains the same throughout the life of the loan. On the contrary, adjustable rate mortgage loans have an initial fixed rate, usually three to five years. Annual rate adjustments follow the initial rate period, wherein the mortgage rate fluctuates and creates unpredictable monthly payments.


	more Q&A sessions like this
	What are the cons of a VA Mortgage? What are the benefits of a VA mortgage? ARM or Fixed Rate Mortgage Loan? What is a conventional mortgage loan? What are the cons of an Interest Only mortgage loan? What are the benefits of an Adjustable Rate Mortgage? What do mortgage lenders look for when calculating adjustable rate mortgage rates? What are the different types of Mortgages? What is a Convertible ARM? What is a Lifetime Cap? What are Triceps? What is a good biceps workout? What is Liposuction or a Lipectomy?