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If
you are in the market for a home loan, you might
consider giving the government a call for a VA Loan.
Department of Veterans Affairs home loans -- VA
loans for short -- are a popular option with home
buyers. In the past fiscal year, the US government
has guaranteed over 498,000 VA loans totaling more
than 63 billion dollars.
There is good reason for this large quantity of VA
Loans. The loans do not require a down payment and
they are readily available from most lending
institutions. Plus, the government puts a limit on
the amount of closing costs and origination fees the
institutions can charge, as well as the appraisal
fees. In general, the loans are available to
veterans, active service members, reservists and
members of the Public Health Service.
Another big benefit to VA home loans -- no private
mortgage insurance. Not only does the VA not require
PMI, it also prohibits lenders from requiring it.
Bob Finneran, the VA's assistant director for loan
policy and valuation says, "We're putting a
guarantee on the loan, so we're not expecting them
to get other insurance and charge the veteran for
that," he says.
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