VA Loans (Veteran Affairs)

VA Loans

  • Zero Down Payment – 100% Financing
  • 580 Minimum Credit Score
  • Loan Terms from 10 to 30 Years
  • 2.30% Upfront Mortgage Insurance Premium (First-Time Use)
  • Financed into Loan Amount
  • Will Vary Depending on Down Payment and Subsequent Use
  • No Mortgage Insurance
  • No Maximum Loan Amount

VA purchase loans are mortgage loans guaranteed by the Department of Veterans Affairs (VA) and are available to eligible military service members, veterans, and some surviving spouses. These loans aim to help veterans and military personnel achieve homeownership by offering favorable terms and benefits.

Here are some key features of VA purchase loans:

  1. VA Guaranty: VA purchase loans are backed by the VA, which means that if the borrower defaults on the loan, the VA guarantees a portion of the loan repayment to the lender. This guarantee encourages lenders to offer more favorable terms and lower interest rates.
  2. No Down Payment: One of the significant advantages of VA loans is that eligible borrowers can finance 100% of the home's purchase price without requiring a down payment. This feature can make homeownership more accessible for veterans and military personnel who may not have significant savings for a down payment.
  3. No Mortgage Insurance: VA loans do not require borrowers to pay private mortgage insurance (PMI). Typically, when a borrower puts less than 20% down on a conventional loan, PMI is required to protect the lender in case of default. The absence of PMI helps reduce the monthly mortgage payment for VA loan borrowers.
  4. Flexible Credit Requirements: VA loans have more lenient credit requirements compared to conventional loans. While specific credit score requirements can vary among lenders, VA loans generally have lower minimum credit score requirements, making them accessible to borrowers with less-than-perfect credit.
  5. Funding Fee: VA loans do have a funding fee, which is a one-time fee paid by the borrower at closing. The fee amount is a percentage of the loan amount and varies based on factors such as the type of service (regular military, Reserves, National Guard) and whether it is the borrower's first or subsequent use of the VA loan benefit. The funding fee helps offset the cost of the VA loan program.
  6. Loan Limits: VA loans do not have a maximum loan amount; however, the VA sets loan limits on the amount of the loan that it will guarantee. These limits vary by county and are based on the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

It's important to note that VA loans are available exclusively to eligible veterans, active-duty service members, and certain surviving spouses. The specific eligibility requirements can be obtained from the VA or by working with a VA-approved lender. Consulting with a VA-approved lender will help navigate the application process and determine the best loan terms and benefits based on individual circumstances.