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The interest rate for VA loan generally follows the loan market like any other home loan. In the past fiscal year along, the U.S. government has granted more than $63 billion for 489,418 VA loan.
The maximum guaranteed for VA loans are $240,000. Most first time buyer will usually be guaranteed up to the maximum amount of $240,000, but the actual loan amount will be given based on credit history, income, assets.
The government try to make VA Loans flexible as much as possible. Nevertheless, a veteran with serious lack of credit or insufficient income may still not be approved.
Since 1982, Congress made law to levy a one time funding fee on VA loans. The fees are about 1.25 % - 3 %, depending on the year of service of the veteran. This is one down side of the loan.
Even if you are qualified for a VA Loan, it does not mean that you should automatically use one. “Prospective homeowners should still shop around,” says Tim Doyle, a director of Mortgage Bankers Association of America. Conventional and FHA loans may offer a better interest rate, if you can afford to pay down payment.
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