Q: Are there still 100 percent loans available for veterans?

A: Yes, there are loans available to veterans. These loans are only given to those who have served in the military in some capacity, or are or were reservists or members of what is called the Public Health Service. There are very restrictive requirements for who is eligible for these loans, which your mortgage lender can help you to determine.

The VA (Veteran’s Administration) loan is designed to help those who need the funds and assistance offered by the loan program. It often works best for those who may have a lower income or those who have a rather challenging credit score, within the acceptable VA limits. Also, it helps individuals to get the funds they need for a home without having to make a down payment on their home’s purchase. If your credit history is excellent and you have a solid history of employment, some other types of loans may work well for you too.

There are several benefits offered through VA loans, all of which make the VA loan one of the best types on the market today. There are no PMI payments with VA loans. PMI (Private Mortgage Insurance) is required by most homeowners to be paid every month with their mortgage payment until they have paid a portion of the home off. This insurance can be costly. With borrowing with a VA loan, you do not have to pay PMI.

Also, there is no down payment required at the time of purchase for your home. This really opens the door for most borrowers because they do not have to have a cash down payment and purchase with 100 percent financing. In addition, the seller can pay the buyer’s closing costs of the VA allowing the home purchase to be without any money out of the buyer’s pocket.

If you are considering a VA mortgage loan you will need to talk with their lender about the requirements for securing these. You will need to show proof that you are eligible through a VA Certificate of Eligibility, which the lender can help you to obtain. The VA home loan is an ideal choice for many eligible veterans that want to purchase their first or additional homes up to $417,000.

The federal government strictly controls these loans including which lenders can offer them. Most lenders are able to do so, but they must follow strict guidelines to maintain eligibility. And the federal government also regulates just how much can be charged to you as closing costs as well as origination fees. These aspects also lower your costs in purchasing the home.

The VA home loan process is pretty simple, uncomplicated and very similar to the conventional loan process. Other than requiring the Certificate of Eligibility (COE) and a home appraisal from an appraiser assigned by the VA the loan process should not be a deterrent to moving forward with the purchase of your home.

The VA loan programs offered through qualified VA lenders and guaranteed through the U.S. Department of Veterans Affairs offer a great opportunity for veterans and active military personnel to purchase a home. In most cases, these loan programs offer the opportunity to purchase a home with no money down and with a better interest rate than a conventional mortgage. If you are a veteran or are currently active in the service and you are considering purchasing or refinancing a home you need to consider a VA loan.

Get answers to questions you might have about real estate from Randy Durham, who is president of the Chattanooga Association of Realtors and a broker with Keller Williams Realty. His column appears on Sundays. Send your questions to Business Editor John Vass Jr. at jvass@timesfreepress.com