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VA loan

Learn what a VA loan is and how you can use it.
Discover the benefits of a VA loan and who may benefit from it.
Find out the requirements to qualify for a VA loan.

What is a VA Loan?

VA loan is a type of mortgage that is guaranteed by the Department of Veterans Affairs. These mortgages offer military veterans and their relatives great benefits compared to other types of loans. Some of these benefits include low-interest rates and no down payment requirement. This program was created to provide home support and assistance for veterans and their families.

The Veterans Administration supplies insurance to lender entities in case you default on the loan. Since the loan is guaranteed, lenders will present a lower interest rate and better terms than with conventional loans. A VA mortgage may have reduced closing costs and no prepayment penalties.

how CAN YOU USE A VA LOAN?

From the U.S. Department of Veterans Affairs website, a VA loan has many uses:
To build a house from start to end.
To purchase a house and improve its condition.
To buy a house, a manufactured house, or a lot, or a condominium in a project approved by VA.
To refinance an existing VA mortgage loan to get a lower interest rate.
To make improvements to your home's energy-related features.

WHAT ARE THE BENEFITS OF A VA LOAN?

VA loans have many features and advantages that ensure veterans and military family members get a chance to become homeowners.
Complete financing
100% financing available with full VA entitlement.
No down payment
Most service members and veterans will not need a down payment.
Low credit score
Compared to conventional loans, the credit score needed to qualify is lower and the debt-to-income ratio is higher.
No PMI
No private mortgage insurance (PMI) means you have to pay fewer fees each month.
Low mortgage rates
Has competitive interest rates which are lower than most programs
Two types of rates
You can choose between fixed and adjustable-rate options.
Covers closing cost
Seller and lender credits can be used for closing costs.
Borrower protection
There is a limit on how much lenders can charge for some fees.
Property flexibility
Townhomes and VA-approved condos are eligible.
Assumable mortgage
VA mortgages can be passed from the current owner to a buyer that will assume the current debt.

WHO BENEFITS FROM VA LOANS?

VA mortgage loans were created to benefit veterans, active military personnel, and military families.

If you don't have these requirements on your resume, there is still a chance for you to qualify. It's always worth talking with one of our mortgage loan brokers so we can provide you with solutions regarding your specific situation.

For full details, visit:
https://www.va.gov/housing-assistance/home-loans/eligibility/

Now, let's find out how to qualify for a va loan

va LOAN QUALIFICATION REQUIREMENTS

Even though the benefits of a VA mortgage are great, the qualification requirements are stricter than other programs. If you want to qualify for a VA loan, you or your spouse must have:

Served 6+ years in the National Guard or the Reserves

Served 181 days during peacetime

Served 90 days during wartime

A credit score of 580 or higher

Eligibility also extends to spouses of service members who died during active duty, are listed as POW/MIA for at least 90 days, or who died or as the result of a military-related disability.

If you don't have these requirements on your resume, there is still a chance for you to qualify. It's always worth a conversation with one of our mortgage loan brokers for a look at your specific situation as you consider buying a home.
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VA LOAN FREQUENTLY ASKED QUESTIONS

Buying a home is a long, complicated process that usually comes with terms and concepts you don't use regularly. To help you with this, we have created a list of questions that VA loan clients usually ask us.

What is the maximum VA loan amount?

VA only allows a loan amount up to $417,000 including the VA funding fee. This means if the loan amount exceeds $417,000 you will be required to contribute enough down payment to reduce the loan to $417,000. Gift funds from a family member are allowed.

How do VA closing costs work?

When you apply for a VA loan with zero down payment, there are closing costs associated with obtaining the loan. The seller can contribute up to 4% towards your closing cost. We also offer no closing cost options.

What are the VA loan credit requirements?

The best credit score required can be as low as 620. However, most mortgage lenders will require a minimum of a 640 credit score for a VA loan. Additionally, they would like to see 1-3 positive tradelines, such as credit card reporting for the past 12 months.

What if I've had a bankruptcy?

Lenders will not allow borrowers who have had a bankruptcy, foreclosure, Deed in Lieu, or short sale in the last 2 years.

What are the VA loan debt-to-income ratio requirements?

VA does allow your DTI ratio to go as high as 45%, but in most cases, the lender only allows up to 41%. Meaning your total monthly obligation cannot be over 41% of your gross monthly income.

Do VA loans permit co-borrowers?

VA only allows the spouse of the veteran to be the co-borrower. In this case, the spouse must have the credit qualification, and their income becomes part of the debt-to-income calculation.

WOULD YOU LIKE TO QUALIFY FOR A VA LOAN?

Are you getting frustrated because you don't know where to start?

JUST PROVIDE US WITH THE PROPER DOCUMENTATION

And OUR MORTGAGE BROKERS WILL DO THE HARD WORK FOR YOU

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WE WORK WITH THE MOST POPULAR MORTGAGE PACKAGES

Selecting the right mortgage loan is very important. As mortgage brokers we make sure you get the best deal available for your home loan.

Conventional Loan

No PMI required with a 20% down payment.
Can be used for a wide range of property types.
Higher loan limits than some government-backed programs.
Flexible loan terms with adjustable-rate and fixed-rate options.
Learn more

VA Loan

100% financing available with full VA entitlement.
No private mortgage insurance required (PMI).
No prepayment penalty.
Guaranteed by the government.
Lenders have limitations.
Loans are assumable.
Learn more

FHA Loan

Low minimum credit score of 500.
Government-insured Loan program.
Flexible qualification for first-time homebuyers.
3.5% down payment with a credit score of 580+.
Closing costs could be paid by the seller, home builder, or lender.
Learn more

USDA Loan

0% down payment or lower down payment than other loan products.
Low private mortgage insurance (PMI).
Easier qualifying requirements for those with lower credit scores.
Can finance 100% of the home's purchase price.
Learn more
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