Posted in Mortgage Rates
In addition to providing standard fixed rate, adjustable, and jumbo rate mortgages, Pentagon Federal Credit Union adheres protocol designed to make it easier for veterans and current military personnel to purchase a home.
The difference between a conventional mortgage loan, such as the types mentioned above, and a VA mortgage is that a conventional loan is not insured. Conventional loans are not backed by the Government, and thus are generic in that they are available to any individual that wishes to take out a loan. Conversely, the VA mortgage program was implemented by the Department of Veterans Affairs as a loan guarantee program geared specifically to benefit veterans.
Upon qualification for a VA casino online mortgage, there is little to no down payment required on your home and at a lower interest rate than standard mortgage loans. However, a VA mortgage does not offer as many different options as a conventional mortgage loan, such as biweekly or ARMs.
The reason why veterans are able to purchase a home with little to no down payment is because the Department of Veterans Affairs takes on some of the responsibility for the loan, almost like a consignee.
Of course, there are limits to the amount an individual can finance through The Department of Veterans Affairs, and a fee is charged for this service.
Please see the financial institution about any changes and additional information. For additional mortgage information refer to our Mortgages page