VA Loans
Looking for a loan that puts a new house’s keys in your hands? You’ve come to the right place!
There are many lenders and mortgage programs out there that will fit your financial needs. Finding them is just a matter or understanding how they work and knowing where to look!
What Are VA Loans?
VA loans are a type of mortgage geared toward U.S. military members – active and veterans – and their eligible surviving spouses, guaranteed by the Department of Veteran Affairs (VA). They offer highly competitive rates, low entry qualifications (beyond profession), no down payment, and no monthly mortgage insurance, making them an excellent choice for veterans.
They might, however, require you to pay an upfront mortgage insurance premium in the form of a funding fee, which can be financed into the loan amount. Some service members can be exempt from paying said fee (for more information on these fees, consult the charts at the bottom!)
Another huge benefit of VA loans becomes available after the mortgage comes into effect: if a person struggles to make payments on the loan, the VA can intervene and negotiate in your stead directly with the lender. This is intended to take away some of the stress of the proceedings.
Already have a loan on your sights? Use our mortgage calculator and make sure it’s the right one for you!
VA Loans Advantages:
- Consistently offer the lowest rates on the market.
- They don’t require mortgage insurance.
- No down payment or minimum credit score.
VA Loans – Notable Requirements
Different types of loans vary wildly on their qualification requirements.
While these might not be all the requirements to qualify for a VA loan, they are definitively essential to know up front!
- You may qualify if you have served 90 consecutive days of active service during wartime.
- Active-duty military personnel generally qualify after six months of service.
- Reservists and members of the National Guard must wait six years to apply.
- VA Loans do require a one-time funding fee that varies depending on the amount of the down payment placed and military category.
- They also typically require borrowers to move into their home within 60 days of purchase and to use it as their primary residence.
VA Loans & Accessibility – All You Need to Know:
As you can probably tell, VA loans are an ideal fit for people with unique financial needs if they meet the qualification requirements. Troublesome credit scores don’t even come into play, and they require no down payments.
Add to that formula the lack of private mortgage insurance, and you have one of the most affordable types of home loans out there!
Even when you take into consideration the funding fee – necessary to offset taxpayer’s costs – it’s still quite possibly one of the better deals you’ll get. Throw in the possibility to refinance an existing VA loan for a new one, lowering existing interest rates, and it almost sounds too good to be true.
That said, there is limited availability for these loans given the military service requirement. Yet, even those are somewhat flexible and should be examined on a case by case basis. Some military personnel might still be eligible even before meeting service time conditions, so consulting with a VA loan specialist might be a good idea.
If you are currently in the military or a retired veteran, VA loans are probably the best option to finance your new home.
Ready to get that VA Loan you’ve been looking for? Let us help!
VA Funding Fee Chart
*Including Cash-Out Refinance Loans
*Including Cash-Out Refinance Loans
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