VA Loans
A Look at VA Loans
VA loans are an excellent benefit for veterans who otherwise would be unable to purchase a home, make improvements or repairs on their existing home or prevent their house from being foreclosed upon. The Department of Veterans Affairs has an array of VA Loans that help veterans, National Guard and Reserve personnel, and surviving spouses of deceased servicemen and women.
With a VA loan, veterans can compete in a marketplace where they otherwise would be at a disadvantage since they forewent gainful employment in service to their country. The various VA Loans are designed to help the men and women who sacrificed in order to protect the United States and all Americans.
The Generosity of VA Loans
- No down payment
- No monthly mortgage insurance premium
- Low interest rates
- Option to refinance 100% of the home
- Open to borrowers with bad credit, and they can still receive affordable interest rates
- Available for National Guard and Reserve personnel who served at least six years
- Available to widows and active duty personnel
Getting a VA Loan
VA loan applicants first need to get a Certificate of Eligibility from the Department of Veterans Affairs. With that document in hand, they can then bring it to a VA Loan company like ours and begin the process of applying for a VA Loan. As VA Loan specialists, we are educated and knowledgeable about the VA Loan process, the various types of loans available, and can ensure you receive the best possible terms and conditions for your VA Loan.
Types of VA Loans
- traditional VA Loans
- VA Streamline Refinance Loans
- VA Cash-Out Refinance Loans
- VA Jumbo and Super Jumbo Loans
- Home Improvement Loans for Veterans; and
- VA Energy Efficiency Loans, among others.
How VA Loans Work
The United States government acts as a guarantor against VA Loans made to veterans and accepted parties into the VA Home Loan Program. Essentially, this means that if the borrower defaults and is unable to pay his loan back to the bank or mortgage company, the government will be responsible. Therefore, the lender is assured repayment of the loan and doesn’t have to worry about incurring losses from defaulted loans. Lenders can thus offer lower rates and easier loan qualifications to veterans.
Additional VA Loan Information
- 9 out of 10 VA loan recipients utilize the no-cash-down feature.
- The typical funding fee for a VA Loan is 2.15%, which is then rolled into the loan.
- The minimum credit score for a VA loan is around 570. It’s nearly unheard of to get a conventional mortgage loan with such a poor credit rating.
- The VA looks at the borrower’s history of making payments in the previous twelve months as well as his or her debt-to-income ratio.
- VA loan borrowers can spend up to 41% of pretax income on other debts, whereas most conventional loans cap the percentage at 36%.
- Even veterans who recently declared bankruptcy can qualify for a VA Loan.