A couple of weeks ago, I was talking on the phone with a potential buyer and I was surprised when she expressed concern over her and her husband being able to come up with the down payment for a home loan. One might wonder why I was so surprised.

 I was surprised because living and working as a real estate agent in Jacksonville NC, close to Camp Lejeune, Camp Johnson, and Marine Corp Air Station New River, the vast majority of my clients are military or prior military. They are eligible for a VA loan guaranty. In my experience, every service person knows that they have access to a VA loan. However, they are not always told exactly what a VA loan does for them or how it works.

 In response to this need, I have decided to create a series of blogs about VA loans, what they are, and how they work for you. The first thing that I will discuss is:

 What is a VA loan?

 The VA loan began in 1944 through the GI Bill of Rights. This provides veterans with a federally guaranteed home loan with no down payment. VA guaranteed loans are made by approved lenders, like banks or mortgage companies, to eligible veterans for the purchase of a primary residence. The guarantee of a VA loan means that the lender is protected against financial loss in the event that the borrower fails to repay the loan. It replaces the protection that lenders would normally have by requiring a down payment. Essentially, this allows you to get a loan with no down payment, and often with a better interest rate.

 So what do you do now? What is your next step? You need to decide if the VA program is for you. The VA program is great for those that are unwilling or unable to make a down payment on a home loan. However, you do have other 'no down payment' options. Your best bet is to contact a mortgage broker and discuss your unique circumstances and needs with them. If you are in the Jacksonville NC area, there are many local mortgage brokers that I recommend and I would be happy to share their contact information with you. They will let you know what information you will need to bring, and what amount you can get pre-approved for. Getting pre-approved for a loan is your first step towards home ownership!

 If you want to learn more about the VA loan program before you take that first step, check back in February for the second installation of my VA Blog series. I will be covering the uses and eligibility requirements for VA loans. I hope to see you next time!