Consider this: A mortgage program offers certain Americans a zero down payment mortgage loan with no private mortgage insurance requirement. Also, closing costs are limited and if the house is newly built, the builder must provide the buyer with a one year warranty.

Despite the obvious benefits of the program, only 10.5 percent of the nation's nearly 22 million veterans take advantage of this aspect of their Veterans Administration benefit offers. When asked why, 33 percent of respondents said they were completely unaware of the benefit, another group said they accepted the FHA loan because they assumed it was "easier" to obtain it.

Obviously, the VA could be doing a better job of informing (especially youth) the surviving military, veterans, and single spouses of the VA home loan, and the mortgage industry could be doing much more to spread the word. So, today we will take a look at the program and learn why it can be the best loan product on the market.

Remember, we are not VA, mortgage or financial experts, so please ask the appropriate professional if you have any questions about the VA home loan program and its benefits.

The Basics of the VA Home Loan Program

VIRGINIA. mortgage loan

Like the Federal Housing Administration (FHA) program, the US Department of Veterans Affairs. USA It doesn't actually make loans, but it does offer lenders a guarantee, if the veteran doesn't make the loan. If this happens, the VA will pay 40 to 50 percent of the loan balance (the percentage depends on the size of the loan).

As you can imagine, this promise allows lenders to relax when faced with a borrower who may have less or less than perfect credit and below-average income.

So what can you do with the VA home loan program?

Buy a house (also a condo, if you are in a VA approved community)
Build a house
Simultaneously buy and rehabilitate a house
Buy a lot and / or prefab house
Is the VA loan more difficult to qualify than the FHA loan?

No one understands why so many current members of the military and veterans assume that the FHA loan is easier to obtain. While there are additional steps you will need to take to get a VA loan, they are quick and somewhat easy (if you have the right lender).

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Your Guide to the VA Home Loan