VA guaranteed loans offer longer terms and are made by Bank of Commerce Mortgage to eligible veterans for the purchase of a home which must be for their own personal occupancy. If the loan is approved, VA will guarantee a portion of it to the lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms. In some cases it is possible for qualified veterans to obtain no down payment financing. Lenders will generally loan up to 4 times a veteran's available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price. Veterans can often benefit by refinancing with a VA IRRRLS which stands for Interest Rate Reduction Refinancing Loan and requires reduced documentation.

VA Loans Offer the Following Important Features:

• Equal opportunity for all qualified veterans to obtain a VA loan.
• No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Buyer informed of reasonable value.
• Negotiable interest rate.
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty. VA assistance to veteran borrowers in default due to temporary financial difficulty.