(VA) Veterans Affairs Loans are Guaranteed by the United States Department of Veterans Affairs

The basic intention of the VA home loan program is to supply home financing to eligible Veterans, service members, and surviving spouses with no down payment.

VA Loan Requirements

In order to qualify for the VA loan program, the homebuyer must have served

• 90 consecutive days of service during wartime

• 181 days of service during peacetime

• Spent more than 6 years in the National Guard or Reserves.

If the homebuyer is a spouse of a service member who died in the line of duty or as a result of a service-related disability, then the spouse can also qualify. The homebuyer must still meet standard income to debt ratio guidelines and satisfactory credit to qualify.

VA Loan Benefits

• 0% Down payment

• No Private Mortgage Insurance

• Competitive Interest Rates

• No loan limits, however there is a limit on the amount of money you may borrow based on income, or the amount the program will guarantee for the loan

• Lower closing costs

• Easier to qualify because the loan is backed by the government

VA Loan Disadvantages

• The VA requires several forms in order to prove eligibility, which can be time consuming, but many qualified lenders will assist you with the process

• The VA charges a funding fee (a percentage of the home price) to cover VA operating expenses and guarantee the loan. The fee could push the loan past the fair market value of the home

• VA loans can take slightly longer to close than conventional or FHA

• The VA has very strict guidelines for home appraisals

The bottom line–VA loans can be immensely helpful to veterans, but not may be the right solution for you.

We’ll help you find the solution that best fits your unique situation.