Posted on Aug 5, 2020
Looking to slide into home? Get the facts about the VA home loan program
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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
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
Benefits
VA Loan
Home Loan
Home
Department of Veterans Affairs (VA)
Posted >1 y ago
Responses: 8
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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.
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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.
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.
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SPC Washington George
SSG Bo Feitshans - Please give me a call [login to see] you sound very confident my Experian score is 655 thats my lowest score but its going up slowing every month..Im looking to get a multifamily home..I have a COE with no funding fee and Im service connected looking to buy in a state where I will pay no property taxes except on a multifamily divided into living area if its 2 family I will pay 50 per cent of the property taxes..my income is all nontaxable lower middle 60,000 Im married 3 kids so a family of 5.Thank you
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SSG Bo Feitshans
SPC Washington George thank you for your comment. I tried you today and left a voicemail. Feel free to reach out to my direct line any time! [login to see]
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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?
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SPC Navshad Lalani
yes they can but it will not make any difference on the terms of the loan, you only need one person eligible to buy a home with va. also it might be better to use only one persons so you can use the other to buy another home if you relocate. you can also buy two homes with one eligibility certificate depending on how much more va guarantee you still have on the certificate
Platinum Financial Services Naush Lalani, Broker NMLS 395028 BRE 01034450 CELL: [login to see] FAX: [login to see] [login to see] Zero Down Financing Available, Bad credit, no credit, bankruptcy, Forclousre, short sale, tax lien, collections ok.
Platinum Financial Services Naush Lalani, Broker NMLS 395028 BRE 01034450 CELL: [login to see] FAX: [login to see] [login to see] Zero Down Financing Available, Bad credit, no credit, bankruptcy, Forclousre, short sale, tax lien, collections ok.
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