What is a VA Loan?
VA, which stands for Veterans Administration, is a loan that originated back in 1944 signed in pipe Franklin D Roosevelt designed to provide veterans and those in active military service with a federally granted home loan with no initial down payment. These loans are made by private lenders such as banks, building, and loan and savings companies, and mortgage companies, to eligible veterans to provide homes and affordable mortgages. These mortgages are protected against loss.
What are the benefits of a VA Loan?
- 100% Financing & No Down Payment Loans
- No Private Mortgage (PMI)
- No Penalties for Prepaying the Loan
- Competitive Interest Rates
- Qualification is Easier than a Conventional Loan
- Sellers Pay Some of the Closing Costs
- Can be combined with additional down payment assistance to reduce closing costs
FAQ of VA Loans
If I have already obtained one VA Loan, can I get another one?
Yes, if you have already applied for a VA loan you can use it again if you have paid off your prior VA loan and you no longer live in the property. On a one-time basis, you can have your eligibility restored if your prior loan has been paid off but you still own the property, hence for a rental property, or similar. There are conditions that when it’s important to talk to your lender about your options.
How do I apply for a VA guaranteed loan?
The first thing you do is to prequalify through a VA supported lender such as Xpress Lending. You will need a certificate of eligibility by the VA by completing a form 26 – 1880 and you’ll need proof of military service.
Are there any disadvantages of a VA Loan?
Some sellers are a little hesitant to work with a VA loan buyer because it does take a little bit longer than the conventional system. Plus, sellers are often asked to pay closing costs, which can take a few thousand dollars from their profit.
Am I restricted to the type of house I can buy?
This type of loan must be used to finance your personal property that you plan to occupy. This can include an existing single-family home, a VA approved townhouse or condo, new construction, a manufactured home or lot, and some refinances will allow for certain types of home improvements on a VA loan.
How do I know if I’m eligible for a VA Loan?
- Veterans who were NOT Dishonorably Discharged, and served at least 90 days
- World War II – September 16, 1940 to July 25, 1947
- Korean Conflict – June 27, 1950 to January 31, 1955
- Vietnam Era – August 5, 1964 to May 7, 1975
- Persian Gulf War – Check with the Veterans Administration Office
- Afghanistan & Iraq – Check with the Veterans Administration Office
- Veterans Administration website www.va.gov
At least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-related disability you should contact your Regional VA Office for eligibility verification.
- July 26, 1947 to June 26, 1950
- February 1, 1955 to August 4, 1964, or May 8, 1975 to September 7, 1980 (Enlisted), or to October 16, 1981 (Officer)
- Enlisted Veterans whose service began after September 7, 1980, or officers who service began after October 16, 1981, must have completed 24-months of continuous active duty and been honorably discharged
Reserves and National Guard
- Certain U.S. Citizens who served in the Armed Forces of a government allied with the United States during World War II.
- Surviving spouse of an eligible Veteran who died resulting from service, and has not remarried.
- The spouse of an Armed Forces member who served Active Duty, and was listed as a POW or MIA for more than 90-days.
Contact us today to find out your eligibility for a VA home loan or prequalify today to find out how much home you can afford.