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VA Loan

What is a VA Loan?

A VA Loan is a mortgage loan in the U.S. guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders. The VA loan was designed to offer long term financing to eligible American veterans or their surviving spouses (provided that they do not remarry)

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Highlights

  • Minimum Credit Score: 620 (may be lower in some cases)
  • Minimum Down Payment: $0
  • Debt to Income (DTI) Ratio: 43% (may go higher)
  • Gift Funds: Allowed
  • Seller Concessions: Up to 4%
  • Mortgage Insurance (MI): No
  • Funding Fee: Yes
  • Maximum Loan Amount: No max amount for first time use or if you have your full entitlement restored. If you have remaining entitlement (2nd or subsequent VA loan) – max $647,200.00
  • Occupancy type: Primary Only

Advantages of a VA Loan

Veterans, reservists, active-duty, surviving spouses of Veterans, based on military entitlement

  • No Down Payment
  • No Cash Reserves
  • No Application Fee
  • May qualify with a higher DTI
  • No Private Mortgage Insurance (PMI) premium
  • VA funding can be financed
    • a. Current Rates (regular military/no down payment)
      • i. 2.3% of purchase price (1st use)
      • ii. 3.6% of purchase (subsequent use)
  • 1 – 4 primary residences may qualify (with certain restrictions)
  • **Disabled Vets** If you have a service-connected disability and currently receive disability benefits and have not yet closed on your VA loan, your funding fee is waived and you do not have to pay it.

Who Qualifies for a VA Loan

You may be eligible for a VA Home loan if you meet one or more of the following conditions:

1. You have served 90 consecutive days of active service during wartime

 – OR –

2. You have served 181 days of active service during peacetime

– OR –

3. You have more than 6 years of service in the National Guard or Reserves

– OR –

4. 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. 

Disadvantages of a VA Loan

  • Cannot be used for investment properties, primary occupants only
  • Some condo associations may NOT allow VA loans
  • Funding Fee (can be rolled into your mortgage)
  • Clean Wood Destroying Organism (WDO) required
  • Repairs from appraisal must be done
  • Appraisals are typically more restrictive
  • The house must meet the VA’s Minimum Property Requirements

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Need more information? Check out one of our videos!

Before you apply for a VA loan, watch this video! You may save THOUSANDS $$

Let’s Talk About the VA Loan with Sam Royer

Watch this video to learn more! Here are the questions we help answer:

1. How do I get a VA Loan?

2. Who qualifies for a VA loan?

3. Minimum credit scores for a VA loan?

4. How can I verify that I’m eligible for a VA loan?

5. Do I get the VA loan from the VA directly?

6. How many times can I use the VA loan?

7. Can I have multiple VA loans out at one time?

8. What kind(s) of properties can I buy with a VA loan? (Rentals/land/apartments?)

9. What happens if I have a foreclosure on a home that I took out with a VA loan? Can I use my VA loan again?

10. VA loan limit

11. Getting out of the military, can I use my VA loan with GI Bill stipend?

VA Loan – Learn the basics of the VA loan and how to get started with applying!

VA Myth Busting – “I thought with a VA Loan, I didn’t need any money for closing?”

VA Loan – Busting the Myths 2.0

In this episode, we will address the following questions/concerns:

1. Can you buy land with a VA loan? Farms?

2. Can I use my VA loan more than once? If so, are there any rules or caveats?

3. Mortgage assumption: Can a veteran transfer a mortgage with their current interest rate? If so, what happens to the veterans entitlement? Does the other borrower need to be a veteran?

4. Refinance with a VA loan? When would you recommend refinancing? When you recommend it?

5. Getting out of the military and want to use my VA loan, what do I need to have set up before I leave?

6. Can I buy a short sale or foreclosure home with a VA loan?

Let’s Connect

You’ve got questions and we can’t wait to answer them.

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