Understanding VA Home Loans
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Understanding VA Home Loans rates and what you need to apply
The VA Loan program is a powerful and beneficial home loan program for many veterans, service members and military families. These flexible, government-backed loans can open the door to many veterans who want to buy, build, or improve a home; including those who may be unable to obtain financing through other avenues.
What is a VA Loan?
VA home loans, along with FHA loans, are the two non-conventional (or government) loans available today. They don’t work in the same way as a traditional mortgage you get from a bank because VA loans are issued by private lenders and backed by the U.S. Department of Veterans Affairs. This means if you default on your payments or face foreclosure due to non-payment, the government agrees to repay a portion of the loan to the bank.
The requirements to secure a VA loan are often less strict than those for a conventional or even FHA loan. You may be able to get a VA-backed purchase loan if you meet all of the requirements listed below.
All of these must be true. You:
- Qualify for a VA-backed home loan Certificate of Eligibility (COE), and
- Meet standards for credit, income, and any other requirements, and
- Will live in the home you’re buying with the loan
What else makes it different?
According to the Department of Veterans Affairs, VA purchase loans increased for the eighth straight year in fiscal year 2019. The increasing popularity is due to the significant benefits offered through the VA Loan program which allow qualified borrowers to purchase a home with little to no money out of pocket. VA loans offer competitive rates and terms, $0 down payment, and private mortgage insurance is not required.
What Are The Benefits of a VA Home Loan?
✔ Up to 100% financing is available with no mortgage insurance.
✔ No appraisal needed on VA Streamline Refinance loans (If discount points charged an appraisal will be required).
✔ Closing costs limited due to VA guidelines.
✔ Closing costs may be paid by the seller.
✔ Surviving spouses of deceased veterans may also be eligible.
*All applications are subject to credit, property and income approval. This is not a commitment to lend. Loan products are subject to change and may not be available in all cities or states. Speak to a licensed loan officer for more details about available loan products and full eligibility requirements.
**Must qualify for eligibility requirements.
Finding the right lender…
Since you might have your mortgage for up to 30 years, it’s important to make sure you’re aligning yourself with a knowledgeable, approachable lender. Especially as a first-time buyer, you will feel more at ease working with a bank you can trust.
At Nationwide Mortgage Bankers, we strive to provide our borrowers with a transparent, personalized experience. For more information on the mortgage process, or to find out more about our mortgage products, view our diverse offering of Services, and Get Started on your home loan preapproval application today.