Get to Know VA Loans for Military Personnel, Veterans, and Spouses
Think you might be able to use a VA loan to save money on the purchase of a new home or when refinancing the mortgage on your current home? We’ve got everything you need to determine whether you’re eligible for VA loans and how much you can save!
What is a VA Loan?
A VA loan is a special type of mortgage loan that is offered by private lenders but actually guaranteed by the U.S. Department of Veteran Affairs. VA loans are only available to qualifying individuals that fit into one of the following categories:
- current US service members and military personnel
- US veterans
- eligible surviving spouses
VA loans are designed to honor the service and sacrifice of qualifying individuals by giving them access to home loan terms that are more favorable than the standard mortgage rates available to the general public.
The Biggest Advantages of VA Loans
The most appealing benefit of a VA home loan is the lack of a down payment requirement. This benefit alone can have an enormous impact on the upfront costs of purchasing a home or refinancing a mortgage.
Also, because mortgage insurance is not required on a VA loan (it’s backed by the government), it is possible to finance up to 80% of a home’s purchase price or value. That’s a valuable benefit that many are eager to take advantage of.
Should You Act Now?
VA loans aren’t going away anytime soon, but there’s still good reason to act fast. Interest rates are still low, but that won’t be the case for long. In fact, we may not see interest rates this low again for decades.
Even with the savings and advantages of VA loans on your side, there’s still significant financial benefit to financing or refinancing a home now instead of a year or two down the line.
If you’re considering a VA loan and you want access to the best lenders and the lowest rates, Trusted House Finance has you covered.
Who qualifies for a VA loan?
You may be eligible if you meet one or more of the following criteria:
- You completed a minimum of 90 consecutive days of wartime active service
- You completed a minimum 181 days of peacetime active service
- You completed a minimum six years of National Guard or Reserves service
- You are the spouse of a service member who died as a result of a service-related disability or in the line of duty.
Are there any fees involved?
While there is no down payment requirement associated with a Veterans Affairs mortgage loan, there are some upfront fees to consider.
The borrower is responsible for a one-time funding fee that varies, according to the eligibility of the borrower and the size of the down payment. If the borrower opts to not make a down payment, they may have to pay a fee up to 2.15% of the value of the home loan.
The funding fee could be reduced to 1.25% if the borrower makes a down payment of at least 10 percent of the home’s value.
What does your credit score have to be to get a VA loan?
Many VA lenders have credit score requirements. The exact minimum score varies from lender to lender, but 620 is a common benchmark. Borrowers with a credit rating under 600 may have to improve their rating before gaining approval for VA financing.
Don’t Miss Out!
You need to act fast to combine the advantages of VA home loans with the historically low interest rates that are still out there.
Trusted House Finance can help you figure out whether or not a VA loan or a VA loan refinance is the right move to make.
Give us some details about your financial status and goals and we’ll help you find the lenders offering the best rates right now!
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