12 Facts About VA Loans
The Veteran's Administration "VA" Loan is a chance Veterans, Active Duty Military, and Eligible Surviving Spouses to secure a mortgage, often with no money down.
1. VA Home loan benefits require two years of active service, less if before 1980, or a minimum of 90 days active duty in the Gulf War era (since 8/2/1990) - Reserve/National Guard requires six years of active participation
2. VA Loans are more popular than you believe, since 1944, more than 20 million VA Loans have been guaranteed by the Department of Veteran Affairs
3. VA loan eligibility can be used over and over when previous use has been restored, by either the individual selling their current residence or refinancing out of VA
4. There is no maximum loan amount, VA will guaranty 25% of the loan up to the county loan guaranty limit
5. The VA loan is only eligible on the buyer's primary residence. They cannot be used to purchase income properties or vacation homes.
6. There is no downpayment required during the use of a VA Loan. *Unless the purchase is more than the county loan limit and then only 25% of the difference is needed for the downpayment
7. No Mortage Insurance (MI) is required, which helps individuals qualify for grander loans or a lower overall payment
8. VA Funding Fee can be financed or paid all or part in cash. The funding fee is far less than Mortage Insurance over the life of the loan (Veterans in receipt of disability compensation are exempt from paying the funding fee)
9. Appraisal requirements have straightforward guidelines to meet - Safe/Sound/Sanitary
10. VA loan qualifiers can secure a VA loan through Welcome Home Funding with credit scores as low as 580
11. VA underwriting guidelines are simple and easy to follow
12. VA provides assistance and counseling to veterans having financial difficulty. They will help negotiate with mortgage servicers to help retain your home. A significant benefit and not available for FHA loans
Information Provided by Welcome Home Funding