VA guarantees loans made to veterans and some unremarried surviving spouses for the purchase or refinancing of homes, condominiums and manufactured homes. VA guarantees part of the total loan, permitting the veteran to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. VA requires a down payment for the purchase of a manufactured home or if the price of a home exceeds the reasonable value, or if the loan has a graduated payment feature.
With a VA guaranty, the lender is protected against loss up to the amount of the guaranty if the borrower fails to repay the loan. A VA loan guaranty may be use to:
Buy a home
Buy a residential condominium
Build a home
Repair, alter or improve a home
Refinance an existing home loan
Buy a manufactured home with or without a lot
Buy and improve a manufactured home lot
Install a solar heating or cooling system or other weatherization improvements
Refinance a VA loan to reduce the interest rate
Refinance a manufactured home loan to acquire a lot
Applicants must have a good credit rating, have an income sufficient to support mortgage payments, and agree to live on the property. To be eligible, veterans must have:
A Certificate of Eligibility is received by applying through the County Veterans Service Office, then the veteran takes his or her certificate to a VA authorized private lender. A list of participating federal/state VA lenders can be obtained at the Veterans Service Office.