VA Loans

VA Loans

A VA home loan is backed by the Veterans Administration and is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces. There is no required down payment and no private monthly mortgage insurance needed. A VA home loan can be used to purchase a new home or even refinance an existing mortgage. The VA does not actually lend the money to the borrower directly, but offers a guarantee to the lender that if the borrower defaults, they will pay the lender a percentage of the loan balance. In the U.S., more than 27 million veterans and service personnel are eligible for VA financing, yet most aren’t aware that it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Benefits of a VA Home Loan:

  • 100% financing
  • no monthly PMI is required
  • limitations on buyer’s closing costs
  • loan is assumable, subject to VA approval of the assumer’s credit
  • 30 year fixed loan available
  • seller may pay up to 4% of the closing costs and even pay down your debt to help lower your debt-to-income ratio
  • interest rates are comparable to FHA rates
  • flexible credit scores allowed

Who is Eligible?

  • Veterans with active duty service, that was not dishonorable, during World War II and later periods
  • World War II (September 16, 1940 to July 25, 1947)
  • Korean conflict (June 27, 1950 to January 31, 1955)
  • Vietnam era (August 5, 1964 to May 7, 1975)
  • veterans must have at least 90 days of service
  • Veterans with service only during peacetime periods and active duty military personnel with more than 180 days of active service
  • Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must have served at least 2 years