Is a down-payment required on the VA Loan Program?
No, a down-payment is not required with the VA Loan. However, You are not prohibited from making a down-payment if you desire to do so. You may enjoy the benefit of a lower VA funding fee if you put down a larger down payment. If you are trying to purchase above $417,000 you may be required to make a down. Some counties are considered high-cost counties and allow 100% financing above $417,000. One our our loan representatives can check the county limits for you, or you can visit this link at the VA to check.
What is the VA Funding Fee?
This is a fee that is charged by the VA on purchase and refinance transactions. This is not a fee that is paid to the lender, nor is it an amount that is dictated by the lender. The fee will be the same for each veteran depending on: branch of service, how many times they have used their VA eligibility and if they have a service-connected disability.
What is mortgage insurance and do I have to pay this with my VA Loan?
Mortgage insurance is a monthly expense paid on most loan programs if you do not put down 20% when you purchase or have 20% equity when you refinance. The VA Loan does not require this insurance, even if you are doing 100% financing. This will save you thousands of dollars a year using the VA Loan instead of other financing options.
What are the eligibility requirements for VA?
- Active Duty—if you have served 2 years and are still in the military or have been honorably discharged, you are usually eligible.
- If you have served 90 days in wartime military duty or 181 days in peacetime duty, under U.S.C Title 10 you are usually eligible.
- The surviving spouse of a veteran may also be eligible if your spouse died because of a service-connected injury or disability.
- Reserve or National Guard—if you have served 6 years you are usually eligible.
- One of our professional loan consultants will gladly answer further questions in regard to eligibility and help you request your certificate of eligibility.
Does a past bankruptcy or poor credit history disqualify me from using the VA loan?
No. The VA Loan takes into account your complete credit history. Having a bankruptcy or past credit issues does not in and of itself disqualify you. We will examine your credit history and credit establishment after your bankruptcy or credit issues to determine if you qualify. The VA Loan also allows credit scores as low as 620—this is lower than most loan programs, as most require 640-660 as a minimum score.
What does it mean?
This means your loan can be assumed by another veteran—as long as they can meet the income and credit qualifications. This saves you the hassle of trying to sell your home.
Does the Veterans Administration lend me the money?
No, the VA does not actually lend money. The VA has established the this program, and lenders who go through the stringent process of being VA approved can lend money following the VA guidelines. Here at the Veteran Loan Site we are approved to do VA Loans through Celtic Bank—our lending institution.
Can I use my VA Loan more than once?
Yes. Your VA loan eligibility can be used more than once. If you payoff your current VA loan in full you can have your eligibility restored and use it again. Also, if you need to transfer to another city and are not able to sell your current home—depending on how much of your eligibility you have used—you may be able to purchase another home and use your VA eligibility concurrently with your new purchase.
What is a Certificate of Eligibility?
Your certificate shows your eligibility to purchase your home using your VA benefit. This is something you can request from the VA, or we can help you to do this electronically. Submitting directly to the VA can take as long as 6 weeks. We can submit this on your behalf and have it back in a couple days – if not immediately. To request a certificate on your behalf, we will need to have you fill out the 26-1880 Request for a Certificate Eligibility Form; and send us a copy of your: DD-214 Release Form (if you are no longer in the military) and a Statement of Service if you are in the reserves.
Other Loan Options
Will it make more sense for me to use a loan program other than VA?
The Veteran Loan Site specializes in VA Home Loans. However, there may be instances where it makes more sense for a veteran to use another loan program. In this case, we will step outside of our normal VA business to make sure our client’s needs are taken care of.
Here are a couple instances when it may be beneficial for you to use a program other than the Veteran Administration Loan.
When does conventional financing may make more sense?
One of the main benefits of the VA loan is that there is no mortgage insurance. Instead of charging the monthly insurance, VA charges a funding fee that is either paid by the veteran at closing or it can be rolled into their loan amount. If you are going to put down 20% you may want to consider conventional financing so you do not have to pay the unnecessary funding fee. If you are exempt from the funding fee you can still use the VA loan without having mortgage insurance.
When does FHA financing make more sense?
The VA will not allow you to add anyone to your loan if they are not your spouse or a veteran. If you need to include a co-borrower to help you qualify, the FHA loan will allow you to add a non-veteran or non-spouse. They will even allow a non-occupying co-borrower to be included on the loan for qualifying purposes.
These are only a few of the instances where financing other than the VA Loan may be more beneficial for a veteran. Please contact a loan specialist to see which program is best for you.
There has never been a better time!
With the tightening of lending restrictions on most loan programs, the VA refinance has remained consistent in their underwriting guides and benefit acknowledgment.
Our in-house underwriting and processing will ensure a smooth and seamless transition from your old loan into your new VA low rate loan.
Interest rates have never been lower. For the first time ever we are seeing refinance rates on 30 year mortgages in the high 3% range. This is historically unheard of and offers a tremendous amount of savings to our clients.