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.

The Veterans Benefit Act, signed recently, increased the VA loan limit to $510,400 for a loan with no money down. It also expanded eligibility for Veterans and active duty personnel and increased the benefits for Disabled Veterans.

Benefits of the VA Mortgage Loan Program

Guaranteed no money down up to $510,400

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 Up to $510,400

You do not have to put any money down to qualify for a VA Home Mortgage Loan for up to $510,400. If the seller agrees to pay the closing costs, you may be able to purchase the home with no out-of-pocket costs. The loan and sales contract can be set up so that the VA Home Mortgage Loan covers 100% of the selling price, and the seller covers the closing costs.

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.

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