VA Loans

The VA mortgage loans are one of the best and safest methods to use when buying a home. Now, even active duty personnel can qualify. If you are a Disabled Veteran, you may qualify for additional benefits on a VA home mortgage loan. The VA Home Mortgage Program does not limit the number of times a veteran may use the program.

VA mortgage loans extend to not only the Army, Navy, Air Force, and Marines but also to Reservists and National Guardsmen.

Full-entitlement VA borrowers face no VA-imposed loan limit — you can borrow any amount a lender approves with $0 down. Borrowers with partial entitlement follow FHFA conforming loan limits: $832,750 in most counties, up to $1,249,125 in high-cost areas. It also expanded eligibility for Veterans and active duty personnel and increased the benefits for Disabled Veterans.

Benefits of the VA Mortgage Loan Program

$0 down — no VA-imposed cap for full entitlement

No monthly Homeowner’s Insurance required

Many VA Mortgage Loans are assumable

Easier qualification compared to conventional loans

VA Mortgage Loans can be refinanced

No Money Down — Full Entitlement

If you have full entitlement, there's no VA-imposed cap on how much you can borrow with $0 down — the lender approves the amount based on your credit and income. If your entitlement is partial (e.g., from a prior VA loan still outstanding), your no-money-down amount follows the standard conforming limits: $832,750 in most counties, up to $1,249,125 in high-cost areas.

The VA Funding Fee

The Veterans Administration assesses a Funding Fee to all VA loans, ranging from 0.5% to 3%. This fee is added to the amount of the loan and paid over its life, replacing the much higher-priced Mortgage Insurance required for conventional home loans. If you are a Disabled Veteran, you may qualify to have this fee waived completely.

Assumable VA Mortgage Loans

VA loans are also assumable. If the person assuming the mortgage is a veteran with VA eligibility, the original veteran does not lose the amount of eligibility used to get the initial loan. Veterans should exercise caution and thoroughly investigate the terms before allowing someone to assume their mortgage, as it is a significant benefit to give up.

Qualifying for a VA Mortgage Loan

The VA offers excellent qualifying standards and does not use credit scoring in its loan analysis. Even if you have experienced financial difficulties that lowered your scores, maintaining a good payment record over the past year or so may still qualify you for a VA mortgage loan. This can save you significantly compared to the cost of conventional loans when your credit scores are low.

VA Mortgage Loans Can Be Refinanced

VA mortgage loans have built-in features allowing them to be refinanced to a lower interest rate without the usual criteria associated with conventional loans. This is called an Interest Rate Reduction Loan. Veterans can secure a lower interest rate without any credit checks, appraisal, or income and asset verification, and can roll the transaction costs into the loan, resulting in no out-of-pocket costs.

773-370-7106

Sunita.easwaran@dollarconnectmortgage.com