Finding the best rate on a VA-backed mortgage
VA-backed mortgages provide qualifying veterans and servicemembers (and sometimes their families) with some of the best financial opportunities available in the current market. Specific terms of any loan, VA-backed or otherwise, always vary depending on several factors: the property, the assets/income/debt of the borrower, whether a down payment is offered, etc. However, generally speaking, VA-backed loans offer opportunities and rates that few other loans will. Why? The VA’s backing of a home loan guaranties that if the borrower defaults, the lender will recover a portion of the losses. Such security is, in modern financial markets, a rarity. So – many lenders will go out of their way to try and win over veterans and servicemembers.
VA-backed mortgages don’t always, or often, require a down payment. Additionally, The VA requires no set credit score of the borrower. That said – the VA does allow the lender to determine an appropriate credit score requirement at their own discretion. VA-backed mortgages normally require a funding fee as a part of the loan process, but under certain circumstances the VA may waive this fee (most often if the Veteran is rated 10% or more disabled for service-connected causes).
The best advice that can be offered, though, would be to obtain quotes/figures from several different lenders – both for VA-backed and other loan options. Look at the varying options available and make a determination as to which program best fits your needs and budget.