IBMC offers VA guaranteed loans with the Department of Veteran’s Affairs to veterans and/or the surviving spouse of a veteran. Explore the features and benefits that make this loan product so appealing. 

VA loans can offer many advantages over other mortgage products. Below is an overview of these benefits:

• No down payment. A borrower can finance 100% of the purchase price, so no down payment is required. 
• No monthly mortgage insurance. This type of loan does not require any form of mortgage insurance and instead requires a small up-front funding fee based on the borrower’s eligibility status. Additionally, the up-front fee can be rolled into the loan amount, which means less out of pocket expenses for the borrower at closing.
• Competitive interest rates. The rate is often lower than any other mortgage product rate. 
• Relaxed credit requirements and qualifications. This loan type is most lenient on the waiting periods for bankruptcy, pre-foreclosure, foreclosure and short sale. This can be beneficial to a borrower that is working hard to repair past credit issues.
• Down payment assistance eligibility. Iowa Finance Authority down payment assistance options can be paired with VA loans to assist with closing costs requirements. This includes IFA’s $5,000 Military Homeownership Assistance Program for eligible service persons or surviving spouses of said eligible service persons. 
• Convenient refinancing options. The Interest Rate Reduction Refinance Loan offers a borrower with a current VA loan the option to refinance to another VA loan provided the interest rate is decreasing. Typically, neither an appraisal nor underwriting documentation is required, reducing the time and cost involved in these transactions.
• Assumable for veterans and civilians. Prospective buyers may have the ability to assume a VA loan with a lower interest rate, which can be a significant benefit in today's higher rate environment.

Two Truths and a Lie

Can You Spot the False Statement?

Last month's issue of IBMConnection examined the features and benefits of Federal Housing Administration loans. Below are three statements based on the content shared in that newsletter — two of which are true and one of which is false.

Test your knowledge by choosing which one you think is false. Results from the poll and the answer will be revealed in next month's issue of IBMConnection.

Last Week's Answer

IBMConnection readers were not stumped by last week's edition of Two Truths and a Lie, which asked about the services IBMC provides. The false statement, which was selected by 94.2% of respondents, was "IBMC's relationship team can complete a loan application for you." While IBMC staff can provide guidance and answer questions throughout the loan process, they cannot complete the application for you.