As a benefit of your military service, the Department of Veterans Affairs provides exclusive resources to help veterans and active-duty service members purchase a home with little to no down payment. VA Loans offer flexible options, including both Fixed and Adjustable Rate mortgages, to suit your needs.
1) No Down Payment Required
2) No Private Mortgage Insurance
3) Flexible Credit Requirements
4) Competitive Interest Rates
5) Limited Closing Costs
6) Government Guarantee
Eligibility for a VA loan primarily depends on the length and type of military service. Veterans, active-duty service members, National Guard members, and some reservists are generally eligible. Specific service requirements include:
Active-Duty Service Members: Typically, they must have served for a minimum period, often 90 consecutive days during wartime or 181 days during peacetime.
Veterans: Eligibility for veterans is based on service during wartime or peacetime, with minimum service durations specified. Discharge conditions also affect eligibility.
National Guard and Reserve Members: National Guard and Reserves members must typically serve for six years to be eligible. Those who are called to active duty may qualify sooner.
Spousal Eligibility
The spouses of service members may also be eligible for VA loan benefits in certain circumstances. This includes spouses of service members who died in the line of duty or as a result of a service-related disability.
1. Understand VA Loan Benefits:
- No Down Payment: 100% financing with no down payment required.
- Competitive Interest Rates: Lower interest rates than conventional loans.
- No PMI: No Private Mortgage Insurance is required.
2. Obtain a Certificate of Eligibility (COE):
- Apply through the VA’s eBenefits portal or a VA-approved lender.
3. Choose the Right Home and VA-Approved Lender:
- Work with a real estate agent who is experienced in VA loans.
- Partner with a VA-approved lender for a smoother process.
4. Complete the VA Loan Application:
- Submit financial documents (proof of income, credit history).
- Lender evaluates debt-to-income ratio.
5. VA Appraisal and Underwriting Process:
- VA appraisal assesses the home’s value and condition.
- Underwriting reviews the financial status and property appraisal.
6. Close on the VA Loan:
- Finalize loan documents and pay limited closing costs.
- Take possession of your new home after closing.
7. Post-Closing Considerations:
- Comply with occupancy requirements (home must be your primary residence).
8. Explore Refinancing Options:
- VA Streamline Refinance (IRRRL) or VA Cash-Out Refinance options are available.
9. Take Advantage of Additional Support:
- Access VA resources for financial counseling and assistance if needed.