Experience The Benefits Of Buying Your Next Home With A VA Loan
VA loans can be a good way for veterans to buy a new home. Veterans, active-duty service members, and their families can use VA loans to purchase new or existing homes with NO down payment. VA purchase loans also allow Veterans to buy single-family homes, condominiums, manufactured homes, multi-unit properties, and even new construction.
Policies and guidelines can vary by lender so make sure to talk with a First Veterans Mortgage Loan Officer to discuss your options.
The VA loan program has provided low-interest rate home loan solutions for Veterans and service members with favorable underwriting guidelines for generations. The core benefit of the program is built upon doing right by Veterans to honor their service and sacrifice for our country. Veterans have access to a home loan program with flexible guidelines and significant financial benefits, primarily the ability to purchase a home with no down payment.
Let’s take a closer look at how VA loans work and what it takes to start the VA loan process.
While the VA loan is a federal program, the government generally does not directly make loans to Veterans. Alternatively, private lenders finance the loan while the Department of Veterans Affairs offers a guaranty.
This guaranty protects the lender against total loss should the buyer default, which provides an incentive for private lenders to offer the VA loan with better terms than other mortgage options.
Qualified veterans with their full VA loan entitlement can borrow as much as a lender is willing to extend, all without a down payment. The VA loan limits only come into play for buyers with less than their full entitlement, either because they have one or more active VA loans or because they’ve lost a previous one to foreclosure. Contact your First Veterans Mortgage Loan Officer to see how the VA loan limits might affect you.
Talk with a trusted lender that knows VA loans and how to get the most from this hard-earned benefit. The process typically starts with getting preapproved, which is a key first step before making an offer on your dream home. Having that preapproval letter gives you a clear sense of your buying power and shows sellers and listing agents you have what it takes to get to closing.
Yes, VA Loans are not limited to one-time use. Once you earn the VA loan benefit, it’s yours to use for the rest of your life. You can reuse the VA loan over and over again, and it’s even possible to have more than one active VA loan at the same time.
VA loans ensure the program keeps running successfully in the future by removing any additional burdens off taxpayers and Veterans. The VA Funding Fee enables this by going directly to the VA.
The fee varies depending on the borrower’s circumstances. For example, if this is your first time using the VA home loan program, the funding fee is typically 2.3 percent of the purchase price of the home. For subsequent use of your VA loan benefit, the fee is 3.6 percent. The fee for an Interest Rate Reduction Refinance loan is just 0.5 percent, no matter how many times you’ve used the benefit.
VA borrowers can roll the funding fee into their overall loan amount. The VA also limits closing costs for Veterans and allows sellers to pay most or all of those expenses. Many Veteran homebuyers can purchase a home with no money due at closing, but every buyer’s situation is different, so make sure to speak to your First Veterans Mortgage Loan officer to discover your options.
The VA also exempts some Veterans and surviving spouses from the funding fee entirely. The most common exemption is for Veterans receiving compensation for a service-connected disability. Surviving spouses with VA loan eligibility are also exempt. Only the VA can make a determination about funding fee exemptions.
VA loans are arguably the most powerful loan option on the market for Veterans and their families. They come with a host of incredible benefits, including a $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines, and some of the industry’s lowest average fixed interest rates.
Every Veteran buyer’s situation is different, and going over all of your loan options with a First Veterans Mortgage loan officer can help ensure you make the best financial decision possible.
A VA loan is a mortgage option backed by the U.S. Department of Veterans Affairs. It is designed to help eligible veterans, active service members, and qualified surviving spouses purchase or refinance a home.
In most cases, VA loans don’t require a down payment. This is one of their major advantages over conventional loans.
A COE is proof that you meet the initial eligibility criteria for a VA loan based on your military service. Lenders require this certificate before approving a VA loan.
Yes, VA loans often have more lenient credit requirements than conventional loans. Be sure to contact your First Veterans Mortgage Loan Officer for more specific program guidelines for VA Loans.
The VA requires that homes purchased with a VA loan must meet their Minimum Property Requirements, ensuring they are structurally sound, safe, and sanitary for the buyer’s primary residence.
A VA loan is government-backed and offers benefits like no down payment, lower interest rates, and no PMI. Conventional loans do not have government backing and frequently come with more stringent eligibility criteria and requirements.
Absolutely! There are specific VA refinancing options available, like the VA Streamline Refinance (IRRRL) and the VA Cash-Out Refinance.
No, one of the significant benefits of VA loans is that they don’t require Private Mortgage Insurance (PMI).
Yes, you can reuse your VA loan benefits if you have paid off your previous VA loan OR if the previous home was sold and the VA loan was paid off.
The VA funding fee is a single payment designed to help offset the overall cost of the loan to taxpayers. The specific amount varies depending on factors such as the type of loan, the down payment made, and whether the borrower has previously utilized a VA loan.
Yes, members of the National Guard and Reserves can qualify for a VA loan, but eligibility criteria based on service duration and type may differ from active-duty personnel.
The VA loan, with its myriad benefits, represents a nation’s tribute to its protectors. Providing prospective homeowners with the opportunity to acquire a home without a down payment, benefit from reduced interest rates, and gain additional advantages for those with disabilities, the VA loan is a valuable tool that can turn the dream of homeownership into a reality for many who have served our country. If you’re considering this route, First Veterans Mortgage is ready to guide you through the process.
*All product information represented on this page is subject product guidelines and can change at anytime. It is for educational and informational purposes only and not a commitment to lend. Please contact your Nationwide Mortgage Bankers Loan Officer today get the latest product guidelines and guidance on what loan programs fit your unique financial picture and goals.
We make financing your home simple and seamless with our user-friendly online platform, allowing you to quickly apply and get pre-qualified for a home loan. Our mortgage specialists offer prompt feedback and support, ensuring a smooth and efficient home financing journey.
