VA Home Loan Purchase: The VA purchase program allows eligible homebuyers to finance up to 100% of the purchase price. Since the end of down payment assistance programs in 2008, the VA loan program has become one of the last remaining 100% home loans in the nation. With many conventional loans now requiring 10-20% down payment, the Veteran’s Assistance home loan is a great choice for home buyers with limited or no down payment. The best part of the VA program is NO monthly mortgage insurance charge. Below we will discuss some VA program benefits and things applicants should know about eligibility. The information below will help you be prepared for your VA loan application.
VA Mortgage Program Benefits:
- VA 100% financing home purchases: Most conventional lenders require at least 10% down payment which is not possible for many Veterans and military families. FHA requires a 3.5% down payment and has very high monthly mortgage insurance. Because a VA Mortgage is guaranteed to the lender (by Veterans Administration) they do not require a down payment.
- VA loans do not have mortgage insurance (PMI): Even with $0 down payment, a VA Mortgage does not have mortgage insurance (PMI) as part of the monthly payment. Conventional programs with less than 20% down and FHA both have expensive mortgage insurance that can cost buyers several hundred dollars every month.
- VA loans have very low interest rates: Because VA Mortgages are guaranteed by the Department of Veterans Affairs, the risk level associated with default is much lower. As a result, the interest rates are usually lower than a conventional program with less than 20% down. Like a VA loan, FHA and USDA loan programs are also backed by the government and have similar interest rates.
- VA can be used to purchase just about any home: The VA purchase mortgage can be used for any HUD compliant single family home, town home or approved condo. All properties must meet the basic HUD standards in regards to condition and safety. All government mortgage programs like VA, FHA, and USDA follow similar property condition guidelines. The home seller can be anyone – bank owned REO, foreclosure, short sale, or “buy owner” type seller. Please note we do not offer financing on mobile or manufactured homes.
- Easy qualifying criteria: VA Mortgage guidelines are more flexible than many other loan programs. The VA mortgage is guaranteed by the government and most lenders have lower credit requirements, making them easier to qualify. Current minimum credit score requirement for most mortgage companies is 620.
VA Loan Eligibility:
VA home loan eligibility can be established for U.S. service personnel currently on active duty or honorably discharged when minimum service requirements are met. Eligibility can be earned by serving in any branch of the US military – Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves or National Guard. You are likely eligible for a VA loan if you served the following:
- 90 days and are currently on active duty.
- 181 days during peacetime
- 6 years in the National Guard or Reserves.
- If you are an unmarried surviving spouse.
Please note: Just because you are eligible for VA mortgage benefits does not guarantee VA mortgage approval. Applicants still must meet all lender qualifying requirements in regards to credit score, debt, income stability, etc.
VA Loan Amount, VA Purchase Price Limits:
Please see the latest 2016 VA Loan Amount Limits here
DD-214 for Veterans:
Your DD-214 is required on the VA Home loan because it lets the lender what type of discharge you had from the military which will determine if you are eligible for VA mortgage benefits. If you are active duty this does not apply. If you have misplaced your DD214, you can order one from the Veterans archives website at http://www.archives.gov/veterans/military-service-records/ It is a good idea to have your DD-214 before applying for your VA home loan. Not having this form in advance can delay your home purchase until received. If you have questions or need help, please reach out to us by submitting the short info request form on the right side. We are always happy to assist you.
VA Certificate of Eligibility (COE):
The VA Certificate of Eligibility causes some confusion for Veterans when attempting to use their VA home loan benefits. The Certificate of Eligibility (COE) form is designed to tell both lender and the Veteran that they have sufficient entitlement/guarantee to use their VA loan benefits. If you want to purchase a home using a VA loan, you must prove that you have the military service to qualify for this benefit. That proof of qualification being the certificate of eligibility. You’ll also need a COE to refinance from a conventional to a VA loan (but not for a streamline/IRRRL refinance).
The easiest way to obtain your certificate of eligibility is to us do it for you. Mortgage lenders use an online system to get your certificate in minutes. If this system doesn’t contain enough data to establish your VA loan eligibility, you can apply manually. This can be done online, phone or by mail.
To apply for your VA Certificate of Eligibility, please contact us directly by submitting the quick info request form on the right side of this page. Mobile users will find the Blue Info Request icon at the top of their page.
VA Mortgage Funding Fee 2017:
Please note the VA funding fee is paid on all purchase and refinance transactions with the exception of certain disabled Vets. The funding fee is paid directly to the Department of Veterans Affairs so eligible military and past veterans can take advantage of 100% financing. Below we have outlined the Florida VA funding fee chart.
NOTE: Veterans who qualify as 10% disabled or greater as a result of active military service are NOT required to pay a funding fee. Those who are not exempt from a funding fee may lower their fee by putting money down on their VA home purchase. For all VA home loans, the funding fee may be paid in cash or it may be rolled into the loan.
Home buyers can learn more about the current VA funding fees in the video below:
Read more about all the 2017 VA Loan Guidelines here.
Please call us with questions 7 days a week at ph: 904-385-3988. You can also expedite your request by submitting the short information request form on the right side of your screen →
Mobile phone users – please select the blue info request form icon at the top of your screen. We typically respond to all submitted request forms within 15 minutes during regular business hours.
Be sure to also view our helpful VA Loan YouTube videos here.
See why VA Mortgage Hub is the most trusted VA loan resource. We are dedicated VA mortgage specialist serving the nations military families 7 days a week. We are always happy to answer your questions about the VA purchase application or qualification requirements.
Serving VA applicants nationwide: Dallas, Houston, San Antonio, Jacksonville, Miami, Pensacola, Orlando, Tampa, Atlanta, Macon, Birmingham, Nashville, Memphis, Phoenix, San Francisco, San Diego, Los Angeles, Cleveland, Little Rock, Chicago, Richmond, Charlotte, New York, Denver, St. Louis, Kansas City