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Client Testimonials

"Shopping for home financing was frightening. I don't like pushy sales people. Tim's Citywide Team's people listened, and seemed different than other lenders. They were experienced and trustworthy. I couldn't believe it—they even guaranteed their rates and closing costs. I think they're wonderful!"

J. Hedberg
Minneapolis, MN
 
   
 U.S. Department of Housing and Urban Development (HUD)
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VA Loans
New Home Buyer Tax Credit Information - Extended April 30, 2010
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What is a VA Guaranteed Loan?
A VA Guaranteed Loan is a loan issued by a bank, savings & loan, or a mortgage company to eligible veterans for the purchase of a home which must be for their own personal occupancy.

To qualify for a VA loan, a veteran must first apply to a lender. If the loan is approved, the VA guarantees a portion of the loan to the lender. This guaranty provides the lender favorable financing terms and protects them against losses up to a determined amount.

There is no maximum amount for a VA loan. However, lenders typically limit a VA loan to $417,000 because VA loans are sold in secondary markets, which currently place a limit restriction at $417,000. For loans up to this amount, qualified veterans usually can obtain financing without a required down payment.

A veteran's basic entitlement is $36,000 (or up to $104,250 for certain loans over $144,000.) Lenders generally will loan up to 4 times a veteran's available entitlement without a required down payment, provided the veteran is income and credit qualified and the property appraises for the selling price.
 
VA Loans offer the following important features:
  • Equal opportunity for all qualified veterans
  • No down payment (unless required by the lender or the purchase price is more than the reasonable fair-market value)
  • Ability to finance the VA funding fee (Funding fees may be reduced with a down payment of at least 5%, and for veterans receiving VA compensation)
  • Closing costs are comparable (or lower) when compared to other financing options
  • No mortgage insurance premiums
  • Assumable mortgage
  • Right to prepay without penalty
  • VA assistance to veteran borrowers who are in default due to temporary financial difficulty