PROGRAMS

VA

Highlights of the VA Loan Program:

  • Allow borrowers to purchase or refinance 1-4 unit owner occupied townhouses, condos, and PUDs
  • No down payment required
  • No monthly mortgage insurance required
  • Liberal qualifying ratios
  • Gift funds may be used for down payment, closing costs, and prepaid expenses
  • Loan limits depend on geographic location
  • No first-time homebuyer restrictions
  • VA mortgages are assumable

What is a VA Mortgage?

Since, the Department of Veterans Affairs has been helping veterans become homeowners. For nearly 70 years the VA has issued loan guarantees on almost 21 million home loans. The Department of Veterans Affairs does not issue loans, lend money or approve your loan. However, the VA does repay a portion of your loan to the lender if you ever default on your mortgage.

Why should veterans or military personnel choose a VA loan instead of a conventional or FHA loan? Most Veterans will tell you the #1 reason to use a VA loan is that there is no money down required when buying a home! We will go over several additional reasons why a VA loan is your best option.

Military Service Requirements for VA Loan Eligibility

Military personnel or veterans who have honorably served in the United States Armed Forces during war or peacetime have earned the right to a VA loan.

To qualify for a VA loan, service members serving during wartime must have at least 90 consecutive days or have at least 181 consecutive days during peacetime. Additionally, service members who have or are currently serving in the Reserves or National Guard are also eligible.

Wartime - Service during periods:
  • WWII (9-16-1940 to 7-25-1947)
  • Korean (6-27-1955 to 1-31-195)
  • Vietnam (8-5-1964 to 5-7-1975)
Peacetime - Service during periods:
  • 7-26-1947 to 6-26-1950
  • 2-1-1955 to 8-4-1964
  • 5-8-1975 to 9-7-180 (enlisted)
  • 5-8-1975 to 10-16-1981 (officer)

Spouses of deceased veterans who have died as a result of active service or service related injuries and have not remarried, may also be entitled to a VA home loan benefits.


Certificate of Eligibility (COE)

A COE verifies to the lender that you are eligible for a VA loan. Military personnel and veterans should get a copy of their certificate of eligibility (COE) prior to getting approved for a VA loan. Military personnel and veterans will need to either complete and submit the VA form 26 - 1880, or have an approved VA lender order an online version directly from the VA to receive the certificate from the Department of Veterans Affairs.

Although not required for a VA loan, your DD-214 form will help when completing your request for certificate of eligibility. Below is a list of some of the information you will be asked for when trying to obtain your COE:

  • Name & Address
  • Phone & Social Security Number
  • Branch of Service
  • Service Numbers, Separation of Service, or Statement or Service (if applicable)

Credit score requirements are another benefit of using a VA home loan to purchase or refinance a property. Credit scores for VA loans are not nearly as strict as conventional loans. VA loan approvals are based on several factors including: income, employment history, and job stability to name a few. Less than perfect credit will not prevent an eligible veteran or active duty military professional from getting a VA loan.


What is a VA Loan?
  • A VA mortgage is a home loan made by an approved lender, but is guaranteed by the Department of Veterans Affairs.
What can you use a VA loan for?
  • VA loans can be used to purchase a property which the borrower intends to occupy as his or her primary residence.
Who is eligible for a VA loan?
  • Military personnel or veterans who have honorably served in the United States Armed Forces during war or peacetime have earned the right to a VA loan.

    To qualify for a VA loan, service members serving during wartime must have at least 90 consecutive days or have at least 181 consecutive days during peacetime. Additionally, service members who have or are currently serving in the Reserves or National Guard are also eligible. To be eligible for a VA mortgage you must be able to obtain a certificate of eligibility from the Department of Veterans Affairs.

    To be eligible for a VA mortgage you must be able to obtain a certificate of eligibility from the Department of Veterans Affairs.
What is a Certificate of Eligibility (COE)?
  • A COE verifies to the lender that you are eligible for a VA loan. Military personnel and veterans should get a copy of their certificate of eligibility or COE prior to getting approved for a VA loan. Military personnel and veterans will need to either complete and submit the VA form 26 - 1880, or have an approved VA lender order an online version directly from the VA to receive the certificate from the Department of Veterans Affairs.

    Although not required for a VA loan, your DD-214 form will help when completing your request for certificate of eligibility.
How does a VA Mortgage work?
  • The VA does not lend the money; it simply guarantees a percentage of the loan balance will be paid if the buyer defaults.
What are the advantages of the VA loan?
  • The primary advantage of a VA home loan is that there is no down payment required on a loan of up to the Freddie Mac conforming limit. VA loans charge the borrower a non-refundable upfront funding fee (Guarantee fee). This fee can be financed, paid out-of-pocket, or can be paid by the seller as a concession. VA loan limits are dictated by geographic location.

    VA mortgages tend to be more forgiving than conventional mortgages in terms of past credit history. A bankruptcy discharge as little as two years ago may not hinder a homebuyer from qualifying for the VA program.

    Purchase and Refinance transactions are eligible for VA loan programs.

Need More Info

Find a Loan Originator