What VA Can Do

VA loans offer the following important advantages over most conventional loans:

Ensure that all veterans are given an equal opportunity to buy homes with VA assistance, without regard to their race, color, religion, sex, handicap, familial status or national origin.

No down payment (unless required by the lender, the purchase price is more than the reasonable value of the property as determined by VA, or the loan is made with graduated payment feature (

A negotiable fixed interest rate competitive with conventional mortgage interest rates;

The buyer is informed of the estimated reasonable value of the property;

Limitations on closing costs;

An assumable mortgage. However, for loans closed on or after March 1, 1988, the assumption must be approved in advance by the lender or VA.

Generally, this involves a review of the creditworthiness of the purchaser (ability and willingness to make the mortgage payments). Be sure to see the section entitled "Loan Repayment Terms";

Long amortization (repayment) terms:

Right to prepay without penalty (lenders may require that any partial prepayments be in the amount of at least 1 monthly installment of principal or $100, whichever is less)

 For houses inspected by VA during construction, a warranty from the builder and VA assistance in trying to obtain the builder's cooperation in correcting any justified construction complaint.

Forbearance (leniency) extended to worthy VA homeowners experiencing temporary financial difficulty.