If you're able to qualify for a loan backed by the Department of Veterans Affairs, you likely have the most effective mortgage offered.
VA loans do not need a down payment and have lenient qualification standards.
Yet they charge a lower rate than standard loans and are widely offered to veterans. Several lenders provide this kind of mortgage, from large banks to local VA mortgage specialists.
Millions of veterans, and anyone on active duty and people within the National Guard and reserve units, may be eligible.
There's a key reason why this loan is so enticing to banks and mortgage corporations. If you default, the government covers a portion of the lender's losses, usually 25% of what you borrowed.
That gives lenders a similar protection as if you had placed twenty five percent down on the house, due to this they offer lower mortgage rates on a loan and that makes it's easier to qualify.