Veterans Affairs (VA) Mortgage Loans

Veterans Affairs (VA) mortgages, make it easier for veterans to obtain financing for home ownership. VA loans are available to veterans and active military members. VA loans are made are guaranteed by the Department of Veterans Affairs. and VA loans are somewhat easier to qualify for than conventional mortgages. Below are a few details:

  • Can be obtained without any down payment.

  • Mortgage insurance not required with less than 20% down.

  • VA does not require a certain credit score for a VA loan.

Although the costs of getting a VA loan are generally lower than they are for other types of low-down-payment mortgages, they still carry a one-time funding fee that varies, depending on the down payment and the type of veteran.

The key to VA loans is an honor offered to most active duty, reserve or National Guard and veteran service members and even some surviving spouses. Veterans are able to borrow over $400,000 without any down payment on a principal residence home. According to the VA, almost 90% of VA loans have no down payment. There’s also no minimum credit score requirement for a VA loan, while most home mortgage loans require a credit score of at least 620 for conventional loans or 580 for most FHA loans. A VA loan can also be used to refinance an existing loan.

The VA points out that the veterans who have taken advantage of the program have some of the lowest home ownership default rates, and that the agency also helped 80,000 VA borrowers avoid foreclosure in 2014, saving taxpayers $2.8 billion.

VA loans do have specific requirements that most other loans don’t, for instance, All work on the home must be completed before the inspection. Moreover, there can’t be chipped or peeling paint inside or out, or termites or mold or loose handrails. While most home inspectors will merely turn on the home’s furnace to see if it works; the VA requires inspectors to verify that the heat source can keep pipes from freezing. 

Ready to apply?  Try our digital mortgage app ProSNAP or call us at 810-335-2102 to get started today!

Heidi Gates