VA mortgage loans are home loans backed by the U.S. Department of Veterans Affairs (VA). They are designed to help eligible veterans, active-duty service members, and certain surviving spouses achieve homeownership with significant financial advantages compared to conventional loans.
Why Choose a VA Loan?
- No down payment: Qualified borrowers can finance 100% of the home’s value.
- No private mortgage insurance (PMI): Unlike FHA or conventional loans, VA loans do not require PMI.
- Competitive interest rates: VA loans often have lower rates than traditional loans.
- Limited closing costs: The VA limits what you can be charged by lenders.
- Flexible credit requirements: VA loans are more forgiving for past credit issues.
Who is Eligible for a VA Loan?
Eligibility is based on military service. You may qualify if you are:
- An active-duty service member or veteran with a minimum service requirement
- A National Guard or Reserve member with sufficient service
- A surviving spouse of a veteran (in certain cases)
VA Loan Funding Fee
While VA loans don’t require mortgage insurance, they do include a one-time funding fee. This helps support the loan program and can be rolled into the loan amount.
- First-time use: Typically 2.15% of the loan amount (lower for down payments)
- Subsequent use: Around 3.3% if no down payment
- Exemptions apply for some disabled veterans
Benefits Beyond the Loan
VA loans are not just affordable—they’re also flexible. You can use them to buy, build, repair, or refinance a home. Plus, the VA offers assistance if you face financial hardship and need help avoiding foreclosure.
Interested in getting started with a VA home loan? Contact us to see how we can assist you today.
