As a current service member or veteran, you are entitled to a variety of benefits, including VA home loans. If you’re considering buying, building, or improving a home, you may be eligible for a VA purchase loan, which can help you qualify for beneficial rates and terms. You can even use a VA loan with no down payment.
Do I Qualify?
To be eligible for a VA loan, you must meet specific requirements related to service in the U.S. Military. You will need a Certificate of Eligibility (COE) based on your service history and duty status. To document your proof of service, you’ll need Form DD-214 discharge papers (Veteran) or a statement of service (Active-Duty Military). We are able to assist you in obtaining your COE.
Active-Duty Military qualify if you have served at least 90 days continuously. Service requirements for Veterans, Reserve members, and National Guard members vary based on when you served, although at least 90 days of active service is the typical baseline. There are also certain discharge conditions that allow you to qualify even if you don’t meet the service requirements, and there is a program for certain Surviving Spouses. Anyone with a dishonorable discharge is disqualified.
Additional Qualifications
As with any mortgage, you will need to meet credit, income, and asset requirements. The advantage of a VA loan is that the guaranty lowers the risk to lenders, and as a result qualifying may be easier with lower credit scores and more flexible debt-to-income standards.
Benefits of a VA Loan
No down payment: A VA home loan does not require you to make a down payment (As long as sales price does not exceed appraised value). This means that you don’t necessarily have to worry about saving up tens of thousands of dollars in order to purchase a home.
Low interest rates: When taking a look at VA loan requirements, you’ll find quite often that interest rates are generally lower than those attached to conventional mortgages.
No PMI requirement: Another great benefit of VA purchase loans is that you don’t have to pay any private mortgage insurance, even if you decide not to put any money down.
Flexible credit and qualifying requirements: While conventional loans have strict credit score requirements, VA purchase loans are more flexible. If you have below average credit, we can still work with you to secure a VA loan.
Limited closing costs: When you take out a VA purchase loan, there’s a limit on the amount you can pay in closing costs, which can lower the upfront cost of purchasing a home.
What is a VA Funding Fee?
Even when you borrow 100% of your property’s appraised value, VA loans do not require mortgage insurance (PMI). (Other loans typically require monthly MI when you borrow more than 80% of the value of your property.) However, there is a funding fee attached to each VA mortgage that helps support the VA loan program. The fee is able either to be paid in full at closing or financed into your loan and paid over time. Certain individuals are exempt from the fee, including Veterans with a service-connected disability, their Surviving Spouses, and Active-Duty Military who have received the Purple Heart.
Type of Eligible Properties:
Single family residences
2-4 unit properties
VA-approved condos
Manufactured housing