VA Mortgage Loans
A VA loan is a great loan option for qualified veterans. It provides the ability to finance 100% of the home’s value while offering very competitive interest rates. VA loan also offers flexible underwriting guidelines while providing safeguards to protect the borrower. A VA loan is a home-mortgage option that is guaranteed by the U.S. Department of Veterans Affairs (VA). VA government backed loans are designed to offer more favorable owner occupied residential home financing to:
- United States Veterans
- Service Members
- Non-remarried spouses (of qualified Veterans)
A veteran’s eligibility and benefit amount is based on several factors such as length of continuous service, enlistment date, and type of discharge to name a few.
Qualifying Veterans can use their benefits to borrow up to a $424,100 without a down payment as long as the purchase price does not exceed the appraised value.
The VA limits the amount of closing cost a veteran can be charged. In addition, a seller can pay all closing costs on behalf of the buyer. As with FHA loans, VA loans have no prepayment penalty and if approved are assumable.
va mortgage benefits
Credit qualifying criteria is easier
VA credit score requirements are lower than other loan products. Buyers with less than perfect credit can qualify for a VA loan. A borrower with less than perfect credit can purchase a home with zero down payment.
Zero down payment required
With a VA loan, Your down payment can be 0% of the purchase price, and most of your closing costs and fees can be paid for by other parties to the transaction.
Refinance up to 100% of your homes value and with the VA IRRRL and you may not even need an appraisal.
Lower credit score needed
Many borrowers believe that because their credit score is less than perfect they will pay a higher interest rate with a VA loan. However, VA interest rates are typically lower than conventional loans. Borrowers with a lower credit score can often qualify for the same interest rate as a conventional borrower with a higher credit score.
Mortgage cost calculatorJust enter your proposed mortgage amount, your assumed interest rate (APR) and your desired term for the new mortgage and click Calculate
do you qualify for a VA loan?
To determine your eligibility, lenders will require a veterans Certificate of Eligibility (COE) and a DD-214. The COE shows your eligible guarantee entitlement amount. your DD-214, is issued by the Department of Defense, shows the character of service and reason for discharge. Once eligibility is determined lenders qualify you based upon your credit, ability to repay and debt-to-income ratio.
Please contact us directly for a free pre-qualification and guidance from real local mortgage people who genuinely care about providing you with the mortgage that best suites your needs.