VA Loan

The U.S. Department of Veterans Affairs (VA) Loan was created to assist servicemembers, veterans, and eligible surviving spouses in becoming homeowners. Just as with other government loans, this funding is not provided by the VA but instead they provide a guarantee which allows lenders to provide more favorable loan terms.

Is it right for me?

This no down payment/ 100% financing loan is only available to servicemembers, veterans, and eligible surviving spouses. The length of service/service commitment, duty status, and character of service determine the individual’s eligibility for specific home loan benefits. In order to qualify with us you will need to provide a Certificate of Eligibility (COE), your mortgage banker can help with this or you can find information here. Additionally, the property owner must occupy the property so this loan wouldn’t work for an investment property like a conventional mortgage might.

Why is it different from other mortgages?

While, this loan program does not require a down payment, similar to the RHS loan, it is unlike the RHS loan in that mortgage insurance is not required. The reason why your lender can offer these favorable loan terms- no down payment, no mortgage insurance, and lower credit score requirements than many conventional products- is because it is backed by the VA. Meaning your mortgage lender takes on less of a risk since the VA will pay a claim if you default on the mortgage. That being said, the VA has it’s own set of appraisal guidelines which the property must meet; dependent on the property this means a water test or a pest inspection may be required.

Give me all the details.

VA mortgages are assumable.

A seller may contribute up to 6% of the purchase price.

The property cannot be income producing.

Given that a good credit history has been re-established, you may qualify for an VA loan even if you’ve gone through bankruptcy or foreclosure. You can find more information here.

Related Posts

Mortgage interest rates have been at historic lows, causing many to look into a refinance of their mortgage, and given the recent market conditions we cannot be certain how long this trend will continue. If you would like more information on why we have seen shifting interest rates, check out this related blog post. There […]

The concept of home is universal, yet we all describe home differently. Why? A home isn’t defined by it’s structure, it is the people that make it a home. We have spent a lot of time in our homes this year, making them into gyms, offices, and classrooms. But if you are like many families, […]

You have put money, time, and energy into your home—resulting in an increase in your home equity.  Additionally, in many places, property values have increased based simply on the market conditions. Did you know that you could use your home’s equity now? With a cash out refinance you can take advantage of your established equity […]