Let's Talk VA Loans
VA loans are backed by the United States Department of Affairs and are offered to those currently serving and those with honorable discharges. These loans differ from conventional loans, because these loans are partially backed by the VA, private lenders are more confident to offer $0 down payments.
Who Qualifies For A VA Loan
According to Veterans United, you are eligible for a VA loan if you meet one or more of the following:
- You have served 90 consecutive days of active service during wartime, OR
- You have served 181 days of active service during peacetime, OR
- You have 6 years of service in the National Guard or Reserves, 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
*To prove to a lender that you qualify for a VA loan, you will need to provide them with your Certificate of Eligibility from the Department of Veteran Affairs.
Benefits of a VA Loan
There are many benefits of using a VA loan and those include:
- No Down Payment: Qualified VA loan borrowers can receive 100% financing on the purchase of their home. Mix that with the no conforming loan limits as of January 2020 and a veteran can finance as much as needed, which had a previous limit of $690,000 in 2019. This is unlike conventional and FHA loan programs as they require a minimum of 5% and 3.5% down to qualify.
- No Private Mortgage Insurance: Conventional and FHA borrowers are also required to pay private mortgage insurance (An added cost to their monthly payment) should they not be able to put a large down payment (Usually 20% of the purchase price). With VA loans there is no mortgage insurance. However, there is an included funding fee that goes directly to the Department of Veteran Affairs. (2.3% of the purchase price). This fee is typically added to the loan.
- You Can Use Your VA Loan Multiple Times: A qualified VA Loan borrower can reuse their VA benefit over and over as long as it is one at a time.
- Purchase With Any Family Member: A VA loan used to require a purchase to be with a spouse, however as of 2020 a VA loan can be used to purchase a home with any family member. (Mother, Father, Brother, etc.)
How Do I Apply For A VA Loan
Most private lenders offer VA loans. However, as someone who loves to serve those who have served, I have partnered with a lender that has worked with veterans for over 20 years. If you're interested in taking advantage of your VA benefit, give me a text or call at (916)918-9949. You served us, now let me serve you!
To Expedite the Pre-Approval process, you can use my preferred lender's app to start the process today!
Quick Mortgage by Mason Mac: https://my.quickmortgage.app/buw3y