Everything You Need To Know About The VA Loan

THE VA LOAN

With Veterans Day right around the corner I found it appropriate to dedicate this blog post to the VA Loan.

If you're a veteran, active duty, or the spouse of a military service member and
you're reading this, thank you for your service! My husband is a Veteran Marine. 

After having our twins, we purchased our first home with a VA loan. Since then, we have sold our first and bought our second home. I am so grateful we took advantage of the opportunity. Without the VA Loan we wouldn’t have been able to purchase our homes.

WHO IS ELIGIBLE?

• Active-Duty Military Members (served 90 consecutive days)

• Veterans (served 24 consecutive months)

• Honorably Discharged Military Members

• National Guard/Reserve Military Members (6 creditable years of service)

• Surviving Spouses

• Cadet at the United States Military, Air Force, or Coast Guard Academy

• Commissioned Officers of the Public Health Service 

*You must meet the minimum service requirements based on when you served.

Click here for a full list of eligibility requirements.

Click here to request a Certificate of Eligibility “COE”

WHAT CAN YOU BUY?

Once a military member qualifies for a VA Loan you can purchase:

• Single Family Home

• Multi-Family up to 4 units

• Townhouse

• Condo

• Manufactured home and lot

• Build a new home

BENEFITS OF THE VA LOAN

There are many benefits to the VA Loan. In my opinion the biggest benefit is there isn’t a minimum credit score requirement. However, most mortgage lenders will have their own minimum credit score. 

• Re-use the loan to purchase another home

• No Down Payment

• No Loan Limits with Full Entitlement *new*  - More information found here

• No Private Mortgage Insurance

• Subprime/Lower Interest Rates

• Fewer Closing Costs. (Many title companies offer discounts for Vets)

• No Penalties for Early Loan Payoff

• Loans are Assumable - meaning another Vet can take over your loan.

Tip: A great selling feature in today’s market.

*You can check your own credit for free up to two times per year with the Annual Credit Report.

VA LOAN TYPES

The VA offers 4 types of loans to all military members. Talk to your mortgage lender to find out which loan is right for you.

• Purchase Loan

• Native American Direct Loan

• Interest Rate Reduction Refinance Loan

• Cash-out Refinance Loan

Click here to visit the Veterans Affairs Home Loan Website.

ONE-TIME FEES

There are many fees to consider when purchasing a home, no matter what type of loan you are using. For more detail on any of the steps read my series “Buy Your First Home in 8 Steps.”

• Funding Fee - some military members may be exempt 

• Earnest Money 

• Inspections

• Appraisal 

• Closing Costs - some title companies offer discounts for military members

• Discount Points - buys down your interest rate

• Title Insurance - required by many title companies

The VA has provided a full Buyer’s Guide with more detailed information. You can download the guide here:

VA Loan Guaranty Buyers Guide.