If you are a veteran a VA mortgage loan could save you money and get you better terms on your mortgage. If you are considering using a VA mortgage there are several things you need to know before you apply; here is what you need to know about VA mortgage loans.

Using a VA insured mortgage allows veterans access to more competitive financing then they might qualify for with a traditional mortgage loan. The Veterans Administration guarantees VA mortgages, they are not the mortgage lender. VA mortgages come from traditional mortgage lenders like any other mortgage; however, because these mortgages are guaranteed by the Federal government, there is little or no risk for the mortgage lender.

In order to qualify for a VA mortgage loan you will need to qualify based on the Veterans Administration criteria for income and credit history. If you are applying for a mortgage that is less than or equals the appraised value of your home you will not be required to make a down payment to qualify. The Federal government insures $36,000 of the loan; this is comparable to the mortgage down payment you would make with a traditional mortgage loan.

A side benefit of taking out a mortgage through the VA is that there are no prepayment penalties, you can haggle over interest rates, and you may qualify for a warranty on your new home. If you fall into a financial hardship the Veterans Administration can help you avoid foreclosure; the VA is a powerful advocate to have in your corner.

When you apply for a VA mortgage you still need to shop and do your homework to find the best mortgage offer. Once you have the loan offer you will need to contact the Veterans Administration for their specific requirements. Make sure you shop from a variety of mortgage lenders and compare all aspects of the mortgage, not just the interest rate. To learn more about finding the best mortgage lender for your VA loan and how to avoid common mistakes during the process, register for a free mortgage guidebook using the links below.