What is a VA home loan?
A VA loan is a benefit that allows certain military veterans to purchase a home with nothing down. The maximum amount a veteran can borrow with a VA loan is $484,350, however several high priced areas such as California and Hawaii allow higher. It is important to remember the maximum you can borrow is still calculated the same as a regular mortgage however with higher debt-to-income ratios. VA is the only loan in the industry that can allow you to get 100% financing up to $1,000,000.
- You served 181 days during peace time (active duty).
- You served 90 days during war time (active duty).
- You served 6 years in the reserves or National Guard.
- You are the spouse of a service member who died in the line of duty or because of a service-connected disability.
- To be eligible, you must have a qualifying credit score, sufficient income, a valid Certificate of Eligibility (COE), and meet certain service requirements.
What are the advantages of a VA loan?
- 100% financing (no down payment) as long as the sale price doesn’t exceed the appraised value.
- No upfront or monthly private mortgage insurance is required.
- VA funding fee may be financed into the loan or paid at closing.
- VA rules limit the amount you can be charged for closing costs.
- Closing costs may be paid by the seller.
- The lender can’t charge you a penalty fee if you pay the loan off early.
- VA may be able to provide you some assistance if you run into difficulty making payments.
- Higher loan limits in more expensive counties.
- You don’t have to be a first-time home buyer.
- You can reuse the benefit.
- VA-backed loans are assumable, as long as the person assuming the loan qualifies.
Why choose Finance of America for a VA loan?
Our Certified VA Specialists know the ins and outs of this different and unique type of loan. The way a purchase agreement is written with a VA loan is critical. If the offer is not structured properly it will lead to problems at closing. If the lender you are considering isn’t familiar with these and many other important details of a VA loan, you are asking for trouble. We love helping our veterans!
Are you ready to move forward with a purchase or refinance? Please give us a call at 888-810-1459 and let us help you secure financing for the purchase of a new home or save you money on the refinance of your existing home. Be sure to ask your loan officer about our closing costs incentives and our low rate guarantee!
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Disclaimer: The information contained in this article has been prepared by an independent third party and is distributed to consumers for educational purposes only. The information is considered reliable but not guaranteed to be accurate. The opinions expressed in this article do not represent the opinions of Finance of America. Please consult with a licensed loan officer for expert advice regarding financing or refinancing a home.