VA Home Loan

Key Benefits of VA Loans

• No Down Payment Requirement: Buy a home without the burden of saving for a large down payment.
• Competitive Interest Rates: VA loans typically feature lower rates than Conventional mortgages.
• No Monthly Mortgage Insurance: Save hundreds each month by avoiding costly private mortgage insurance (PMI).
• No Prepayment Penalty: Pay off or refinance your loan early without incurring extra fees.
• Flexible Credit Requirements: Less stringent credit score standards make these loans accessible to more borrowers.
• Reduced Funding Fees: Veterans receiving disability compensation may qualify for reduced or waived funding fees.
• Cash-Out Refinancing Up to 100%: Access your home’s equity for home improvements, debt consolidation, or other expenses.
• Support for Financial Hardships: VA offers borrower assistance programs beyond loan approval.

VA Loan Eligibility

Eligibility for a VA home loan is determined by the United States Department of Veterans Affairs (VA). You will need a Certificate of Eligibility (COE) to apply.

General Service Requirements

You may qualify if you meet one of the following service criteria:

• 90 days of active duty during wartime
• 181 consecutive days of service during peacetime
• 6 years in the National Guard or Reserves
• Surviving Spouse: Unmarried spouses of service members who died in service or due to service-related disabilities, and some remarried spouses meeting specific conditions

Other Eligible Groups

VA loan benefits may extend to individuals who served in the:

• Armed forces of a U.S. ally during World War II
• Public Health Service, NOAA, and Merchant Seamen during specific periods

Spouses of prisoners of war or missing service members may also qualify.

VA Loan Requirements

Beyond eligibility, VA loans have additional requirements:

• Funding Fee: A one-time fee that varies by down payment and usage history, but it can be rolled into the loan amount.
• Occupancy: The property must be your primary residence, with exceptions for certain military relocations.
• Loan Usage: VA loans cannot be used for investment properties or second homes.

Funding Fee Breakdown

Down Payment	First-Time Use	Subsequent Use
0%	2.3%	3.6%
5% – 9.99%	1.65%	1.65%
10% or more	1.4%	1.4%

 

Types of VA Loans

• VA Purchase Loan: Choose a fixed or adjustable-rate mortgage to finance your home purchase.
• VA Cash-Out Refinance: Refinance up to 100% of your home’s value, even if your current loan is not VA-backed.
• VA Streamline Refinance (IRRRL): A simplified option for existing VA loan holders to lower their interest rate.
• VA Energy Efficient Mortgage: Finance energy-saving home upgrades, capped at $6,000.
• VA Native American Direct Loan (NADL): A specialized loan for Native American Veterans purchasing or improving property on federal trust land.

How to Apply for a VA Loan

1. Obtain a Certificate of Eligibility (COE): Your lender can help retrieve this document from the VA.
2. Work with a Mortgage Specialist: They’ll guide you through choosing the best VA loan option for your needs.
3. Find a Real Estate Agent: Experienced agents familiar with VA loans can help you find the right home.
4. Appraisal and Approval: A VA-approved appraiser will assess the property’s value before loan approval.
5. Closing: Once approved, you’ll complete the closing process and become a homeowner.

Frequently Asked Questions

Start your journey to homeownership today with a VA loan tailored to your needs. Contact us to learn more about eligibility and loan options.