VA Loans

VA Loans

VA home loans offered through the Department of Veterans Affairs are available not only to active duty service members, but qualified veterans and many others as well. VA loans are not made by the VA, but guaranteed by the department, allowing lenders to provide veterans and military members better interest rates and loan terms.

The VA Loan Guaranty Program was started in 1944 as a means to assist returning service members with affordable home loans. Over the last 70 years, more than 18 million veterans have taken advantage of this program.

VA loans are very flexible. Along with using a VA mortgage to buy a home, you can also use a loan to build a home, refinance an existing VA mortgage, take cash out of a home, make repairs or improvements to an existing home, or even make energy efficient improvements.

VA Loans

VA Loan Eligibility

You may be eligible for a VA home loan if you are:

  • An active duty military personnel
  • A veteran
  • A National Guard or Reservist who has served at least six years
  • A spouse of a military member who was killed in the line of duty or rated totally disabled and eligible for compensation prior to death, regardless of the cause of death.

You will need to obtain a Certificate of Eligibility (COE) from the VA before you can obtain a VA loan from a lender. This certificate states that you have VA entitlement and may participate in the home loan program. A VA lender can assist you with obtaining this form.

VA Mortgage Program

Benefits of a VA Mortgage

VA loans are widely viewed as the best mortgage program available today for many reasons. A VA loan does not require a down payment, and it is far easier to qualify for a VA mortgage than a conventional loan. In fact, around 80% of all VA borrowers would not be able to qualify for a conventional loan.

VA Loan Costs

You can typically obtain a VA mortgage without a down payment or even paying any closing costs out of pocket. A VA loan does require a funding fee, however. The funding fee depends several factors.

Department of Veterans Affairs

There are many advantages of the VA program:

  • No down payment required (100% financing)
  • Low interest rates
  • No private mortgage insurance
  • Easier to qualify in terms of debt, income and credit score
  • You can qualify if you have gone through foreclosure or bankruptcy
  • No prepayment penalties
  • Seller can credit you up to 6% toward your closing costs
  • Streamline refinance program makes it easy to refinance a VA loan later
  • VA funding fee can be financed. (There is no funding fee for surviving spouses)
  • VA mortgages are assumable
VA Loan Cost

For Regular Military Members

  • No down payment: 2.15% funding fee
  • 5% to 9.9% down payment: 1.50% fee
  • 10% or greater down: 1.25% funding fee

For National Guard and Reservists

  • No down payment: 2.4% funding fee
  • 5% to 9.9% down: 1.75% fee
  • 10% or greater down payment: 1.50% funding fee

Not sure if a VA mortgage is right for you? VA home loans are almost always the best choice if you qualify, especially if you have limited credit or little saved for a down payment. It is very hard to beat the competitive rates, looser credit standards, and no down payment of a VA-backed mortgage.

Advantages of a VA Loan

Get Started on a VA Loan Today!