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VA LOANS
See also: FHA Loans
What are the benefits of a VA home loan?
- Equal opportunity.
- No down payment (unless the purchase price is more than the appraised value of the property).
- Below-market interest rate.
- Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5%, and exemption for veterans receiving VA compensation).
- Closing costs are comparable with other financing types (and may be lower).
- No mortgage insurance premiums.
- An assumable mortgage.
- Right to prepay without penalty.
- For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
- VA assistance to veteran borrowers in default due to temporary financial difficulty.
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