1st Source is proud to participate in the VA Home Loan program administered by the Department of Veterans Affairs. This special program offers veterans an opportunity to purchase a home at a competitive interest rate, even if they have had difficulty securing conventional financing in the past.
Aside from the required veteran's certificate of eligibility and VA-assigned appraisal, the application process is not much different than other types of mortgage loans.
Advantages of a VA Home Loan
- No down payment as long as the sales price doesn't exceed the appraised value.
- No private mortgage insurance premium requirement.
- VA rules limit the amount you can be charged for closing costs.
- Closing costs may be paid by the seller.
- There's no penalty fee if you pay the loan off early.
- The VA may be able to help if you have trouble making payments
- You don't have to be a first-time homebuyer to participate.
- You can reuse the benefit.
- VA-backed loans are assumable, as long as the person assuming the loan qualifies.
In addition to home purchase loans, the VA also offers Cash-Out Refinance Loans, which allow veterans to convert their home's equity into cash to pay off debt, make home improvements or pay for other expenses.