Unlock the door to your dream home with a VA loan, a benefit earned through service and sacrifice.
VA loans are a unique benefit available to veterans, active-duty service members, and some surviving spouses. These loans are backed by the U.S. Department of Veterans Affairs (VA) and offer a pathway to homeownership with favorable terms. Unlike conventional loans, VA loans do not require a down payment or private mortgage insurance (PMI), making homeownership more accessible to those who have served our country.
The VA loan program is designed to provide long-term financing to eligible American veterans or their surviving spouses. The VA guarantees a portion of the loan, which allows private lenders to offer more favorable terms, including competitive interest rates and fewer fees. Understanding the basics of VA loans can help you take advantage of this valuable benefit.
To be eligible for a VA loan, you must meet specific service requirements set by the VA. Generally, this includes veterans who have served on active duty for a minimum period, as well as current service members who have completed a certain amount of active duty. Additionally, members of the National Guard and Reserve may also qualify after serving for six years or more or completing a specified period of active duty.
Surviving spouses of veterans who died in service or as a result of a service-connected disability may also be eligible for a VA loan. It's important to obtain a Certificate of Eligibility (COE) from the VA, which verifies your eligibility and is a crucial step in the loan application process.
For active-duty service members, veterans, and National Guard or Reserve members, the service requirements to qualify for a VA loan vary based on the period of service and discharge status. Those who served during wartime generally need at least 90 days of active service, while those who served during peacetime need 181 days. Members of the National Guard and Reserve must typically complete six years of service or be called to active duty for a specified period.
Surviving spouses may qualify for a VA loan if their veteran spouse died while in service or from a service-related disability. Unmarried surviving spouses can also benefit from the VA loan program, provided they meet the eligibility requirements set by the VA. This benefit aims to support families who have made significant sacrifices for their country.
One of the advantages of a VA loan is its flexibility regarding credit and income requirements. While the VA does not set a minimum credit score, most lenders look for a score of at least 620. Additionally, lenders will assess your debt-to-income (DTI) ratio to ensure you can manage your mortgage payments along with other financial obligations.
Stable and sufficient income is essential for securing a VA loan. Lenders will evaluate your employment history and current income to determine your ability to repay the loan. It's essential to provide accurate and comprehensive financial information to streamline the approval process.
VA loans offer numerous benefits, making them an attractive option for eligible veterans, service members, and surviving spouses. One of the most significant advantages is the absence of a down payment, which lowers the upfront cost of purchasing a home. Additionally, VA loans do not require private mortgage insurance (PMI), saving borrowers a substantial amount over the life of the loan.
Other benefits include competitive interest rates, limited closing costs, and the ability to finance the VA funding fee. The VA loan program also offers flexible terms and can be used to purchase a home, refinance an existing mortgage, or make home improvements. For surviving spouses, these benefits provide financial stability and the opportunity to achieve homeownership even after the loss of a loved one.
See if you qualify for a VA Loan - simply complete our brief questionnaire and we'll be able to tell you if you qualify.