At Coast2Coast Mortgage, we're proud to help those who have served our country achieve the dream of homeownership. VA loans offer unique advantages that make buying a home more accessible and affordable for veterans, active duty service members, and eligible spouses.
What Are VA Loans?
VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA). These loans are designed to help veterans, active duty service members, and eligible surviving spouses become homeowners with favorable terms that wouldn't be available with conventional financing.
Benefits Earned Through Service
VA loans offer unique advantages for veterans, active duty service members, and eligible spouses, making homeownership more affordable and accessible. These benefits are earned through your military service and are designed to help you achieve the dream of homeownership.
Key Benefits of VA Loans
No Down Payment Required
Qualified veterans can finance 100% of their home purchase with no money down. This is perhaps the most significant benefit of VA loans, as it eliminates one of the biggest hurdles to homeownership - saving for a down payment.
No Monthly PMI
Save hundreds monthly with no private mortgage insurance requirement. Unlike conventional loans with less than 20% down, VA loans don't require monthly mortgage insurance premiums, resulting in lower monthly payments.
Competitive Terms
Get access to competitive rates and limited closing costs. VA loans typically offer interest rates that are lower than conventional loans, and the VA limits certain closing costs that veterans can be charged.
Guidelines For VA Loans
Eligibility
Must meet military service requirements or be an eligible spouse. Eligibility is generally available to veterans who have served 90 consecutive days during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserves. Surviving spouses of veterans who died in service or from a service-connected disability may also be eligible.
Credit Score
No VA minimum, but lenders typically require 620+. While the VA doesn't set a minimum credit score requirement, most lenders have their own standards. With a higher credit score, you'll typically qualify for better interest rates.
Occupancy
Must be your primary residence. VA loans are designed for homes you intend to live in as your primary residence, not for investment properties or vacation homes.
Property Type
1-4 unit properties that meet VA property standards. The property must be in good condition and meet the VA's Minimum Property Requirements (MPRs), which ensure the home is safe, sound, and sanitary.
Why Choose a VA Loan?
VA loans offer significant advantages over other loan types for those who qualify. With no down payment requirement, no monthly mortgage insurance, competitive interest rates, and limited closing costs, VA loans can save you thousands of dollars both upfront and over the life of your loan.
Additionally, VA loans are assumable, meaning a future buyer could potentially take over your loan terms - a significant benefit in a rising rate environment. VA loans also have no prepayment penalties, giving you flexibility if you decide to pay off your loan early.
Ready to Explore Your VA Loan Options?
Jim Steen at Coast2Coast Mortgage can help you navigate the VA loan process and take advantage of the benefits you've earned through your service.
Frequently Asked Questions About VA Loans
Can I use my VA loan benefit more than once?
Yes, VA loan benefits can be used multiple times. Once you've paid off your VA loan and sold the property, you can have your full entitlement restored to purchase another home. In some cases, you may even be able to have multiple VA loans at once.
Do VA loans have funding fees?
Yes, most VA loans include a funding fee that can range from 1.4% to 3.6% of the loan amount, depending on your down payment and whether it's your first use of the benefit. However, certain veterans with service-connected disabilities and some surviving spouses may be exempt from this fee.
What types of properties can I buy with a VA loan?
VA loans can be used to purchase single-family homes, condos in VA-approved developments, multi-unit properties (up to 4 units if you live in one), and new construction homes. The property must meet VA property standards and be your primary residence.
Are there limits to how much I can borrow with a VA loan?
While the VA doesn't set a maximum loan amount, there are limits to how much liability the VA will assume, which can affect how much you can borrow without a down payment. These limits vary by county. However, veterans with full entitlement are not subject to loan limits.