Please use the links below to find out more about general VA Loan policies and the Department of Veterans Affairs.
VA Loans have many benefits not offered by conventional loans, especially for first-time homebuyers with little or no money for a down payment. Unlike conventional loans, VA Home Loans do not have private mortgage insurance requirements. Additionally, VA Loans usually have lower rates than conventional loans and are not subject to the closing costs associated with conventional loans. This is because there are certain fees that borrowers cannot be charged. VA Home Loans also give you the ability to refinance to a lower rate without having to re-qualify for the loan, a process known as a VA Streamline Refinance, or IRRRL. Getting started on your VA Loan is easy; simply contact a VA Loan Specialist now!
This means the VA guarantees the loan to the lender in case you default on the loan. It does not mean that you are guaranteed a loan; you still have to qualify for it based on credit and income.
Yes, most of the time lenders only look at the last 12 months of credit history: however, bankruptcies, tax liens, and collections could have an adverse affect even if they are over 12 months old.
No, the VA does not offer any interest only programs at this time. On all VA Loans you pay back to the principal of the loan and gain equity with every payment.
No, the VA does not offer stated or no-document programs. All loans through the VA require full documentation.
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No, the VA guarantees the lender on the loan. There is no third-party mortgage insurance required with a VA Loan.
No, with a VA purchase you cannot get cash back at closing other than your earnest money or other money you put down before hand. If energy efficient improvements are being made to the home, the VA does allow the loan amount to go above the purchase price of the home.
Your entitlement is the amount that the VA will guarantee for your loan with the lender. $36,000 is the maximum entitlement and will allow you to purchase 100% up to $417,000.
This is allowed, but the guidelines are very strict. The second loan has to be equal to or better than what you would get with one large VA Loan. The rates on second loans are nearly always higher and, therefore, would not fit guidelines. Also, many lenders will not allow a second loan behind the VA Loan during a purchase.
Unfortunately, VA Loans cannot currently be used for homes priced above $417,000. If your home will cost more than this amount, one option is to put enough money down to close the gap between the purchase price and the $417,000 loan limit. If a VA Loan is not right for you, we can assist you in choosing an alternative mortgage solution. For more information about home purchases, visit the VA Home Purchase FAQ's.
No, at this time the VA does not guarantee HELOCS. The VA will allow you to cash out on your existing property up to 90%.
Equity is the amount of value a homeowner has in their property. You can calculate your equity by subtracting any liens or debts against your home from what your home is worth.
A discount point is a percentage of the loan amount you will pay to buy your interest rate lower. You can buy to a lower rate with discount points, which can sometimes save you money over the life of the loan.
A statement of service is a letter from your commanding officer stating how long you have been in the service and what your status is. It is required documentation to receive your Certificate of Eligibility.
Title insurance is insurance you get in case a lien is found against the property after you buy it. The title company will do a thorough check to make sure that doesn't happen. In the off chance a lien is found, you are covered.
A child care letter is a letter required on a VA Loan if the borrower has children under the age of 13. A VA Loan requires that childcare expenses are counted as liabilities for qualification purposes.
Most of the time, the realtor will want your pre-approval letter to show that you have been approved for a loan and for how much. This is a better bargaining chip with the seller because the seller will know you are approved for the loan and won't have to wait while you find financing.
No, you can get pre-qualified before you even start looking for a property. This way you know what you can afford and what your payments will look like on the property that you end up choosing.
Many factors go into the timing of the process. To be safe, you should allow at least 30 days for the entire process to take place. However, it is possible to close in as little as two weeks. With the help of our VA Loan Specialists, the process is quick and easy! To learn more about us and how we can help you with all of your loan needs, check out About Us FAQ's.
Many local banks and credit unions are not approved to issue VA Loans. If your local bank is discouraging you from choosing a VA Loan, make sure it has the ability to issue VA Loans. For a majority of Veteran homebuyers needing close to 100% of the purchase price, a VA Loan is often the best option.
If you have questions, or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA Mortgage Specialist online or call 800-405-6682.