Advantages for Military Homebuyers
Lower Payments
Unlike conventional loans, VA loans do not require independent mortgage insurance. Purchase Loans help you purchase a home at a competitive interest rate often without requiring a down payment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements.
- While there is a VA Funding Fee it can be financed or is not required if:
- Veteran receiving VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
- Surviving spouse of a Veteran who died in service or from a service-connected disability
No Down Payments
90% of VA loans are 0 down payment loans. A VA mortgage can allow you to purchase a home with very little initial out of pocket expenses. Up to 100% of the property value can be financed, and so can the VA funding fee. Closing costs are permitted to be covered by gift funds or paid by the seller.
Easier to Qualify
You don't need to have a perfect credit score to qualify for a VA loan. Those with less than perfect credit can sometimes qualify for a VA home loan even if they would not qualify for most conventional loans. Often times a 580 score is all that is needed to get started. The home must be for your own personal occupancy.
- VA home loans can be used to:
- Buy a home, a condominium unit in a VA-approved project
- Build a home
- Simultaneously purchase and improve a home
- Improve a home by installing energy-related features or making energy efficient improvements
- Buy a manufactured home and/or lot
- To refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate
- To refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home
Generally, the follow criteria qualify for eligibility. For a complete list of eligibility requirements please visit:
https://www.benefits.va.gov/homeloans/purchaseco_eligibility.asp
- You have more than 6 years of service in the National Guard or Reserves, OR
- You have served 181 days of active service during peacetime, OR
- You have served 90 consecutive days of active service during wartime, OR
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
