How does a VA loan work? Once you're deemed eligible for a VA home loan, you'll receive what's called your "entitlement," or the amount the Department of Veteran Affairs will guarantee on your loan in the event you go into default....
The VA home loan can also help existing homeowners refinance into a lower interest rate or cash-out home equity. How does a VA loan work? VA loans are backed by the Department of Veterans Affairs. The government, however, doesn’t issue funds — it only guarantees the loans. This insuranc...
What Is a Conventional Loan? A conventional loan is a type of mortgage used to finance or refinance the purchase of a residential property. Unlike loans that are backed by government agencies, such as the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA),...
Here’s a breakdown of the main parts of a mortgage: Down payment: If you were buying a house right now, how much could you afford to put toward its purchase? This is precisely what a down payment is. Down payment requirements vary from lender to lender and loan to loan, but they us...
What is a loan modification and how does it work? A loan modification is the process of permanently changing your existing mortgage so it’s easier to manage. The goal of a mortgage modification is to reduce your monthly payments to an affordable level, helping you stay up to date on the...
making a down payment— while also taking out a loan from a bank to cover the rest of the home's price. The money you're borrowing from the bank (which is your mortgage) will need to be repaid with interest and in exchange, you'll get to occupy the home and renovate it as you ...
How Does Escrow Work When Buying A House? When youmake an offer on a house, you’ll typically include a personal check for 1 – 2% of the purchase price, although it can be higher depending on the market and the custom in the area. This is called “earnest money” and shows the sel...
A down payment is the money you pay up front towards the cost of your new home or property. Learn how it works, common down payment myths, and more.
What to Do When Declined for a VA Loandoi:http://www.military.com/money/va-loans/what-to-do-when-declined-The American Dream can become a nightmare when a VA loan is turned down. What should you do in that situation?Stephen BajzaStephen Bajza...
How does an escrow account work? To set up your mortgage escrow account, the lender will calculate your annual tax and insurance payments, divide the amount by 12 and add the result to your monthly mortgage statement. Each month, the lender deposits the escrow portion of your mortgage payment...