VA Home Loans

A VA loan is a mortgage guaranteed by the United States Department of Veterans Affairs and available only to active service members, veterans, and eligible surviving spouses. Unlike conventional loans, VA loans require no down payment to purchase or refinance a home.

Features

No down payment required
No private insurance required
Less than perfect credit often accepted
Reduced closing costs
Issued by private lenders
Often offers the possibility of better terms because it’s backed by U.S. government
Certificate of Eligibility required

What Is A VA Loan?

A VA loan is unique compared to a standard mortgage. While it is provided through a private lender, a portion of the principal is guaranteed by the federal government. This guarantee means that the Department of Veterans Affairs backs the loan, protecting the lender if the borrower defaults. Eligible borrowers can benefit from a small or even nonexistent down payment, making it a significant advantage of a VA loan. Be sure to ask Chris Lamm about the down payment requirements when requesting a VA loan.

Who Qualifies For A VA Loan?

Like any loan, a VA loan has standard requirements such as good credit and sufficient funds for payments. Additionally, you must be eligible through your military affiliation. For a complete list of eligibility requirements, visit the Department of Veterans Affairs website, which also answers many specific questions about the program.

When applying for a VA loan, you’ll need a certificate of eligibility to present to the lender. This certificate can be obtained through the Department of Veterans Affairs. Once you provide it to the lender, they can assist you in navigating the application process.

VA Loan Benefits

There are several benefits to a VA Loan, however here are a few to highlight:

Primary Benefits:

No down payment: VA home loans allow you to purchase a home without a down payment, eliminating the need to save tens of thousands of dollars upfront.
Low interest rates: VA home loan interest rates are generally lower than those for conventional mortgages. Several factors influence your rate, and getting pre-approved for a VA loan will give you a better idea of what to expect.
No PMI requirement: With VA purchase loans, you don’t have to pay private mortgage insurance (PMI), even if you make no down payment.
Flexible credit and qualifying requirements: VA purchase loans are more lenient with credit score requirements compared to conventional loans. We can work with you to secure a VA loan even if you have below-average credit.
Limited closing costs: VA purchase loans cap the amount you can pay in closing costs, reducing the upfront cost of buying a home. Additionally, you can use a 401(k) withdrawal to help cover closing costs.

Again, that's just a few of the benefits. Please reach out to us if you have any questions about VA Loans.

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