Looking to slide into home? Get the facts about the VA home loan program

U.S. Department of Veterans Affairs — Wed, 05 Aug 2020 16:59:42 -0400

Looking to slide into home? Get the facts about the VA home loan program

Many of us want to own a home, refinance our too-high mortgage payment or use some of our home’s equity for a big purchase. But getting the best deal means first wading through a confusing thicket of financial information.

Luckily, if you’re a veteran, service member or family member of one, you have quality financing options through the U.S. Department of Veterans Affairs (VA) home loan program.

Eligible Native American veterans may seek a VA loan to buy, build or improve a home on federal trust land through the Native American Direct Loan (NADL) program.

For all others, VA guarantees a portion of your loan, which helps banks and other lenders provide money at a lower cost toward the purchase or refinancing of your home. In the VA-backed home loan category, we offer three main types of benefits:

 Purchase loans to buy a home, condominium or manufactured home.

 Cash-out refinance loans to refinance a non-VA loan into a VA-guaranteed loan.

 Interest rate reduction refinance loans to obtain a lower-interest loan or to move from a variable interest rate loan into a fixed-rate loan.

Key considerations

Should you pursue a VA-guaranteed home loan or another type of loan? Here are some considerations to help you make your decision:

Know the benefits. Unlike with conventional and Federal Housing Administration (FHA) loans, most VA loans do not require a down payment or mortgage insurance. In addition to these money-saving benefits, VA may offer competitive interest rates and limited closing fees. If you’re an eligible veteran, service member or family member, you can get a VA home loan at any age. You can reuse this benefit, even if you’ve had a VA loan foreclosed on. You can even have more than one active VA loan.

Understand the process. The process for obtaining a VA-guaranteed home loan is relatively simple if you meet VA’s eligibility, credit and income requirements. Start by gathering the information you need for the Certificate of Eligibility at https://rly.pt/VAeligibility and apply online at eBenefits.VA.gov. Then, contact the lender of your choice. (If you’re eligible for the Native American Direct Loan, VA is the lender.)

Meet the criteria. Even though VA guarantees loans, you still must meet lenders’ criteria in terms of credit history, income and other factors that affect your ability to pay the loan. And some lenders have criteria that exceed our VA guidelines. Work to build up your credit score well in advance of your home purchase so you are able to obtain the best interest rate possible on your loan. In general, however, VA-backed loans offer the most competitive rates.

Avoid mistakes. Educate yourself about the home-buying process. Even if you’re eligible for the VA home loan benefit, compare offers from multiple lenders and shop around to compare interest rates and fees and get the best deal. Be sure to consider the true cost of homeownership and make sure you can handle the monthly mortgage payments on the home.

Dispel the myths. Despite what you may have heard, homes purchased with VA-backed loans do not take longer to close or appraise at lower amounts. Another recent development is that the Blue Water Navy Act removed effective loan limits for VA-guaranteed loans closing after Jan. 1, 2020. This may benefit you if you’re seeking a no-down payment jumbo loan in a high-cost market.

Learn more

 Call a VA Regional Loan Center at [login to see] to ask questions about COEs, homebuying or underwriting.

 Visit https://rly.pt/VAhomeloan

How to apply for a VA home loan Certificate of Eligibility | Veterans Affairs

Find out how to apply for a VA home loan Certificate of Eligibility (COE) to prove to your lender that you qualify for a VA direct or VA-backed home loan based on your service history and duty status. Then, learn more about the rest of the loan application process.

Response by 1LT Vance Titus made Aug 5 at 2020 6:16 PM

1LT Vance Titus — Wed, 05 Aug 2020 18:16:34 -0400

I used my VA home loan benefits for the first time four years ago and then again last year. Don't know why I waited so long. Zero down got us into a home four years ago that we couldn't have managed otherwise. Great program. Work with a lender or mortgage person experienced with the VA loan guarantee program.

Response by SGT Dawn Wilson made Aug 5 at 2020 9:55 PM

SGT Dawn Wilson — Wed, 05 Aug 2020 21:55:08 -0400

If both a husband and a wife have there own separate VA home loan certificate can they use both towards the same house. One to purchase and the second to refinance?

Response by SPC Julio L R. made Aug 13 at 2020 3:35 PM

SPC Julio L R. — Thu, 13 Aug 2020 15:35:04 -0400

There is no special privilege for VETs, except for the no down payment benefit. If you don't have good or acceptable credit, don't even bother until you are in an acceptable range.
An acceptable range for VA is actually 660. And then your credit report is also a determining factor. Your eligibility does not mean zip. You still have to go through the process like any other person. No one will help you if you are middle class or below. No one is willing to take a risk for or with you. A lot of red tape out there. There are no home developments being built for the middle class or for low income people any more. I speak out of experience and for myself.

Response by AN Dale OBrien made Sep 24 at 2020 6:35 PM

AN Dale OBrien — Thu, 24 Sep 2020 18:35:48 -0400

Yes I am looking to buy a home.

Response by SPC Tonetta Harris made Sep 25 at 2020 12:44 PM

SPC Tonetta Harris — Fri, 25 Sep 2020 12:44:06 -0400

I'm looking to buy as well but have to see what my credit scores are and what i have to do to get a 600 or 620.. I have so many questions..

Response by Capt Francisco Briseno made Sep 30 at 2020 3:41 AM

Capt Francisco Briseno — Wed, 30 Sep 2020 03:41:23 -0400

Interesting picturesque picture of another veteran and his family losing their home. I noticed that the movers are not moving anyone in, but more like an eviction where they are facing outward from the home. Is it an ooops! picture? Or just a sign of the times. Welcome home to the real world.

Response by PFC Private RallyPoint Member made Oct 17 at 2020 3:33 PM

PFC Private RallyPoint Member — Sat, 17 Oct 2020 15:33:40 -0400

My son and I are both veterans and we bought a house together. But were were not allow to get a VA loan together. I was told because we are not a married couple we are mother and child. Is there any way we could have gotten a VA loan together.

Response by Capt Francisco Briseno made May 25 at 2021 2:24 AM

Capt Francisco Briseno — Tue, 25 May 2021 02:24:40 -0400

Cool