What is a “VA Loan”?

Contrary to popular belief, the VA does NOT lend money.  A VA Loan is simply a guarantee to a Lender that if they loan you money and you fail to repay the loan, the VA will reimburse that Lender 25% of your loan’s amount.  Lender’s love this because it’s a great insurance policy for their loan balance.  That’s why the rates are normally better and normally carry 100% financing.  For additional information, contact CarsonBound.com.

How do I get a VA Loan?

It’s easy with us.  Simply contact CarsonBound.  We’ll take care of the rest.  Yes, we’ll even take care of obtaining your VA Certificate of Eligibility.  You can’t obtain a VA Loan without one.  For additional information, contact us.

What is the difference between a VA Loan and an FHA Loan?

VA Loan
The VA does not lend money; it guarantees a portion of the loan so that lenders who originate the loan feel comfortable with their risk. Qualified veterans can obtain loans up to $417,000 with no down payment. This limit changes frequently. VA-guaranteed loans can be combined with second mortgages and are assumable upon qualifying by any future buyer.

The Government National Mortgage Association (Ginnie Mae) recently announced that it has eliminated the $417,000 home loan limit on Department of Veterans Affairs (VA) mortgage loans. This policy change is designed to make it easier for lenders to help veterans and servicemembers use their VA Home Loan benefit to finance homes in higher priced housing markets. For more information, read the article at Military.com.

FHA Loan
FHA does not lend money or make a loan; rather, it insures loans. The down payment can be as low as 2.25%. Either buyer or seller may pay discount points. FHA charges a 2.25% up front Mortgage Insurance Premium (or as little as 2% for a first time home buyer) that can be financed in the mortgage amount or paid in cash (no premium is required for condominiums). The borrower must also pay an annual Mortgage Insurance Premium or 0.5%, which is collected monthly.

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