There are a variety of loan products and the 4 most commonly used are Conventional and Government Loans like FHA, VA, and USDA.
VA Loans
After WWII, the Federal Government decided our veterans deserved help in healthcare, education and housing. The GI Bill established certain benefits to qualified veterans and the VA home loan was one of them. The Department of Veterans Affairs (VA) provides a loan guaranty to eligible Service Members, Veterans and surviving spouses. The guaranty allows lenders to make loans to these individuals with no down payment requirement.
To qualify for a VA loan, borrowers must obtain a certificate of eligibility from the VA and lenders can help with this process. With the certificate, a lender will determine the maximum amount of loan the borrower will qualify for. In Pima County the maximum loan amount is $484,350 for a VA loan without a down payment. You can use a VA loan for purchases above this figure, but it will require a down payment.
A huge benefit for VA loans is no down payment and no monthly mortgage insurance. The borrower does pay a “Funding Fee” at close, but it is normally financed by the lender and not paid in cash. If the borrower was disabled as a result of service, the funding fee may be waived.
