Tennessee 100% VA loans through the U.S. Department of Veterans Affairs are still available to qualified veterans in Nashville, Memphis, Knoxville, Chattanooga, etc. Buyers can still purchase a home with no money down in 2023. The VA does not make loans directly, they insure loans made to the buyers via approved lenders and banks.
The VA guarantees loans made to give veterans better rates and terms. The VA Loan Guaranty Program was put in place in 1944 to help veterans returning from war afford a home. Over 18 million veterans have since used the program. Along with offering loans to buy a home, a VA loan can be used to refinance a VA loan, take cash out of a home, repair or improve an existing home, make energy-efficient improvements, and much more.
Here are just some of the benefits of VA loans in Tennessee:
- 100% financing without private mortgage insurance (PMI) or a second mortgage.
- A VA funding fee of 0 – 3.6% (the funding fee may be financed) of the loan amount is paid to the VA. *Most disabled Vets are exempt from this.
- When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
- VA Jumbo options are available for higher loan amounts up to $4mil. Read the complete VA Jumbo Loan Guide.
- When refinancing a home, veterans may cash out up to 100% of the appraised value. Or borrowers can also do a simple streamline VA IRRRL ( Interest Rate Reduction Refinance) with no cash-out.
- *100% VA cash-out options are now available for up to $1mil loan amounts.
True No Down Payment VA Mortgage:
Over the years changes to housing regulations have nearly eliminated 100% financing programs for home buyers. Fortunately, VA Home Loans still allow eligible Veterans to purchase homes with no down payment. Most lending institutions require a 5% to 20% down payment, making it difficult for many military families. The Federal Housing Authority (FHA) requires a down payment of 3.5%, Veteran Mortgage Loans are structured with guaranteed funds to lenders secured by the government via the Department of Veteran Affairs.
Low VA Interest Rates:
With interest rates often lower than any other loan program, VA loans are highly competitive since the potential risk of lender loss is negated by the government’s guarantee.
Flexible Qualification Requirements:
The flexibility afforded to veterans through VA Mortgages is unlike any other program. Although individual lenders have specific standards, due to the Department of Veterans Affairs mortgage guidelines and guarantee, the qualification requirements are somewhat easier than conventional loans. Vets will be required to have a min 600 credit score with no serious financial hardships in the last 3 years.
No Mortgage Insurance or PMI:
VA Loans do not require mortgage insurance in addition to the monthly payments. Contrasting with traditional housing programs, VA home buying programs save Veterans from paying expensive mortgage insurance.
Fast and Free Pre-Qualification:
VA Mortgage Hub offers Tennessee home buyers, and buyers across the nation free pre-qualification services. The entire process is often completed in less than 30 min. To get pre-qualified for a VA loan, fill out the short info request form on this page and a dedicated VA mortgage specialist will contact you and help with any questions 7 days a week. You can also call us ph: 800-743-7556
Happy to serve Tennessee: Memphis, Nashville, Knoxville, Chattanooga, Clarksville, Murfreesboro, Jackson, Franklin, Johnson City, Bartlett, Hendersonville, Kingsport, Collierville, Cleveland, Smyrna, Germantown