Zero down payment requirements, competitively low-interest rates, minimal closing costs, plus no need for private mortgage — these are the main selling points of VA home loans
Verify Your ZERO Down VA Loan Eligibility
A VA loan is a mortgage loan guaranteed by the US Department of Veterans Affairs (VA). Private lenders, such as banks and credit unions, offer VA loans. VA mortgages are the most flexible lending programs available for most borrowers in the military, with no down payment required.
VA loan program has helped millions of veterans and their families achieve the dream of homeownership. Since the program was created, it has focused on reducing economic challenges that service members face post-war while adjusting to civilian life.
VA home loans level the playing field for active-duty service members, veterans, and eligible spouses. They offer these individuals the financial resources needed to successfully transition into homeownership and live a decent, comfortable life.
It reflects the government's concern for veterans who miss out on housing opportunities due to the harsh credit and down payment requirements set by conventional lenders.
The VA loan program offers home buyers some great benefits, and if you qualify, you'll want to consider taking advantage of them seriously. Learning the benefits of a VA home loan will help you decide whether taking one is worth it.
One of the obstacles to affording a home has to be the down payment charged by most mortgage lenders. But with a VA mortgage, you can still get to finance a home even when you can't make a down payment. VA loan allows you to fund up to 100% of the total value. The federal government guarantees the loan, so you don't have to pay a down payment.
Lenders usually charge a mortgage insurance fee on loans with a down payment of less than 20% of the mortgage amount to guard against defaults. Thankfully, with a VA loan, the government covers this insurance. As a result, veterans get to save thousands throughout their home loans.
VA loans have no limits for selected eligible borrowers. If you have full VA entitlement, meaning you haven't used your home benefits or fully paid a previous VA loan, you can borrow any loan amount without restrictions. However, the lender will determine how much you can borrow based on your current income, assets, or credit history.
A prepayment penalty is a fine that lenders charge borrowers for paying off their loans partially (more than the allowed periodic payment) or thoroughly ahead of schedule. If you pay off your loan sooner than scheduled, the lender won't collect the projected interest, resulting in unexpected losses. Fortunately, VA loans do not have prepayment penalties, allowing you to clear your loan as early as you wish.
VA loans protect veterans from paying expensive closing costs. Borrowers can request home sellers to cover up to 4% in concessions for various expenses like insurance and judgments. The VA even prohibits lenders from charging more than 1 percent of the loan amount as an origination fee to lower closing costs.
VA loan benefits don’t expire. A VA loan is a lifetime benefit for eligible active service members and Veterans. It is even possible to service more than one VA loan simultaneously, which is handy if you want to upgrade to a bigger and better home. You don’t need to clear your existing loan to qualify for another.
Note - The VA partners with lenders to assist borrowers in making sound financial decisions and avoid defaulting or falling behind on mortgage payments by offering various foreclosure avoidance programs.
You must meet basic eligibility requirements to get a VA loan. The Veteran Affairs is the only accredited organization that can assess your eligibility for a VA loan. Here's what you need to qualify.
You’re currently serving or are a veteran who received an honorable discharge and had attained the minimum service expectations.
You served about 90 consecutive days in war or 181 straight days during a peaceful period.
You’re a spouse of a military member who died in the line of duty.
You have served for at least six years in the National Guard or Selected Reserve.
Even though the eligibility for VA loans is established along guidelines set by the VA, the final decision of whether or not to issue a loan will fall to the lender. Your chances of getting considered for a VA loan depend on how best you meet the lender’s requirements.
The VA department does not set minimum credit score requirements, but private lenders do, and their minimum credit score may vary. Typically, they look for a credit score of 620 and above.
Lenders tend to check that applicants have an income that allows them to keep up with their payments and significant expenses while having enough money left over to keep up with their day-to-day expenses.
Lenders pay close attention to borrowers’ debt-to-income ratio. DTI ratio indicates the percentage of your gross monthly income used to cover monthly debt obligations. This figure will quickly let lenders know whether you're in a comfortable enough position to take on additional debt.
Note - VA conducts appraisals and inspects properties before financing. That means you can only get a VA home loan after the program has ascertained that the house you plan to buy meets set standards.
Getting Approved for a VA loan can be easier than you think, but it does take time to take all the necessary steps to get there. Here's a breakdown of the vital steps to getting a VA home loan.
Choose a VA-approved Lender
Obtain a Valid Certificate of Eligibility
Pre-Qualify for a Loan Amount
Search for a House and Sign the Purchase Agreement
Lender Processes Your Application and Orders a VA Appraisal
Close on the VA Loan and Gain Homeownership
Note - Make sure you have all of this information handy before you begin filling out the paperwork so you can complete it quickly. The loan process takes anywhere from 30 to 45 days.
It is a unique loan program for veterans, active military members, and widows of fallen military personnel. Since they require little to no down payment, they can ease the homeownership process for you.
We are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted advisor, providing highly personalized service and helping you through every step of the loan process — from application to closing and beyond. It’s all designed to exceed expectations, provide satisfaction and earn trust.
