VA Loan FAQ
Get the answers to your VA home loan questions
We understand how difficult the process for getting a VA loan can be. It is our goal to simplify this process and offer you the confidence you need when entering into the VA home loan process.
Use our Loan FAQs below to get the VA loan information you need to feel comfortable moving ahead in the home mortgage process:
- What exactly is a VA Guaranteed Home Loan?
- How valuable is something like the VA loan program?
- What are the benefits of a VA home loan?
- Is it difficult to get a VA loan?
- Does my entitlement guarantee I will get a home loan?
- Why choose Loan One, a division of Benchmark Bank, for your VA loan?
Q: What exactly is a VA guaranteed home loan?
A: A VA guaranteed loan is made by a private lender, such as a bank, savings & loan or mortgage company to eligible veterans and active duty personnel for the purchase of a home. The guaranty protects the lender against any loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment.
Q: How valuable is something like the VA loan program?
A: The VA loan program is one of the best administered of all the home loan plans. Veterans and active service members should be capitalizing on this opportunity.
Q: What are the benefits of a VA home loan?
A: There are a variety of beneficial reasons to consider a VA loan:
- Loans are equal opportunity
- You do not need a down payment (as long as the sales price does not exceed the appraised value)
- You are informed of a reasonable value
- Interest rates can be negotiated with the lender
- Closing costs are comparable with other financing types
- No mortgage insurance premiums
- You do not need to purchase private mortgage insurance
- There is no penalty for paying off your loan early
- In financial difficulty, the VA may provide some assistance in making payments
Q: Is it difficult to get a VA loan?
A: No, in fact, it’s easier mechanically to get a VA loan. Since the requirements are different than a conventional FHA loan, there is much less hassle for the borrower. Applying for a VA loan is a much more straight-forward process than applying for a traditional loan, especially if you work with Loan One.
Q: Does my entitlement guarantee I will get a home loan?
A: No, it’s important to understand that the VA cannot compel a lender to make a loan that would violate their active policies. Lenders are mandated to comply with VA income and credit standards. It is important that you choose a lender like Loan One, who is willing to work with you.
Q: Why choose Loan One for your VA loan?
A: Loan One is a low cost lender. We offer a better value for your money, and personalized service by giving you one broker to work with throughout the entire loan process. Not only can we help you navigate VA loans with ease, but we actually have veterans on staff that have gone through the program first-hand. This insider knowledge makes us the right choice for your loan. We understand what is most important to you, and can rest assured we have your best interests in mind.