A VA loan is a mortgage that is guaranteed by the US Department of Veteran Affairs. VA loans are designed to enable our active duty military and veterans to achieve homeownership. These loans are unique as they provide our service members with more flexible terms than what could be obtained through Conventional or FHA loans. This program also applies to certain military and veteran spouses.
Advantages to VA Loans
- No Down Payment Required: VA loans provide up to 100% financing so veterans can purchase a home regardless of the money they have saved.
- Lower Interest Rates: VA loans typically have much lower interest rates than Conventional or FHA Loans, making mortgage payments for our service members more affordable.
- No Mortgage Insurance Required: Mortgage insurance can be a hefty cost when it is required to obtain a mortgage. VA loans do not require mortgage insurance which is another added benefit for our service members.
- Reduced Funding Fee: Veterans who receive service-connected disability compensation will qualify to have their VA funding fee waived and may also qualify for reduced loan fees on streamline refinances.
- Perfect Credit Not Needed to Qualify: Service members with some credit challenges can still qualify.
- 100% Cash Out Refinance: Gives service members the freedom to utilize all or any portion of the equity in their property to pay off debts, remodel the home, or for any other purpose they see fit.
VA Loan Requirements
- In order to be eligible to utilize the VA loan, at least one of the following must apply:
- Veterans must have at least 90 total days of service during wartime
- Veterans must have 181 continuous days of active duty service during peacetime
- Veterans must have 6 or more years of service in the National Guard or Reserves
- Spouses who have not remarried and were married to a service member or veteran who died while in service or who died from a service-connected disability
VA Loan Options
Whether you’re looking to make a new purchase, or you’re looking to refinance, we have you covered. Service members can choose from both fixed rate and adjustable rate mortgages, which ever product best serves their needs. When it comes to refinancing, current veterans with a VA loan may refinance with the VA Interest Rate Reduction Refinance Loan (IRRRL), also referred to as the VA Streamline Refinance, and the VA cash out refinance, to lower their interest rate or to take cash out respectively. Streamline refinances offer the ease of a simplified loan process and there is no need to submit bank statements, W2s, or pay stubs. If you have any further questions regarding your options for a VA loan, speak to one of our VA product specialists today!