By Andy GERO

Need a Loan?

Veterans who need a loan might consider borrowing it from the VA Guaranteed Home Loan, known as a VA loan. No down payment or required private mortgage insurance (PMI) coverage are good reasons to borrow from the VA. If you are currently receiving a VA disability compensation loan you will be required to pay a funding fee.

Compared to a private lender, the VA doesn’t set interest rates, which is cost-effective. It is important to have a current credit score and all your finances in order. Always shop around for the best rate.

In certain situations, the VA will allow another buyer to step in and assume your loan. Should interest rates rise, this could be the single greatest advantage. The terms of the loan could be more favorable and the cost of the transaction could be substantially less.

You may also use a VA loan to refinance a conventional loan or another VA loan. If you already have a VA loan, the interest rate reduction refinance loan is an option. It has a 0.5% funding fee and there are no appraisal or financial underwriting required by the VA.

Visit va.gov for details. But remember, VA loan or not, the smartest move is to make sure that your decision to buy is appropriate given your circumstances.

Andy Gero is a lifetime member of the VFW Post 1614 and the American Legion Post 288 in La Crescenta. He may be reached through the CV Weekly, (818) 248-2740 or write Crescenta Valley Weekly at 3800 La Crescenta Ave., Suite 101,
La Crescenta, CA 91214.

  Andy GERO