This guarantee allows lenders to offer home loans to service members and veterans who may otherwise not be able to qualify for a conventional loan. To date, the VA Home Loan program has helped over 20 million servicemembers and veterans buy a home, since WWII.
For U.S. servicemembers and veterans, it can sometimes be difficult to establish the level of credit necessary to qualify for a home loan. To make homeownership more attainable for servicemembers and veterans, the Department of Veterans Affairs established the VA Home Loan, which guarantees a portion of the loan and enables lenders to provide you with more favorable loan terms.
VA Purchase Loan- If you are on active duty or retired from the military and in the market for a new home, you should call Home Fast Funding to learn how you could save money with a VA Home Loan.
VA Streamline (IRRRL) Refinance-Already in a home? Consider refinancing into a VA IRRRL (Interest Rate Reduction Refinance Loan) also called the Streamline Refinance Loan. The VA IRRRL lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also often refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.
The VA mortgage loans extend to not only the Army, Navy, Air Force and Marines but also to Reservists and National Guardsmen.Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won’t have to pay a down payment, and the VA guarantees to your lender that if you default on a loan that’s over $144,000, they'll pay them up to 25% of the loan amount.
Some of the benefits of the VA Mortgage Loan Program are:
- The VA Mortgage Loan requires ZERO DOWN Payment
- No monthly Mortgage Insurance is required
- No Funding Fee for a service connected Disability
- NO minimum credit score (some lenders will apply a minimum of 500)
- Manufactured Housing OK
- VA home loans are available for eligible surviving spouses
No Money Down
You do not have to put any money down to qualify for a VA Home Mortgage Loan. If the seller agrees to pay the closing costs, you may be able to purchase the home with no out of pocket costs.
The VA Funding Fee
The Veterans Administration assesses a Funding Fee to all VA loans the costs of which can be found HERE. If you are a Disabled Veteran, you may qualify to get the fee waived completely.
Assumable VA Mortgage Loans
VA loans are also assumable. If the person assuming the mortgage is a veteran with VA eligibility, the original veteran will not be giving up the amount of eligibility that they used to get the loan at the beginning. Veterans should use great care and closely investigate the terms of an assumption before allowing someone to assume their mortgage. It is too great a benefit to give up.
Qualifying for a VA Mortgage Loan
The VA offers excellent qualifying standards. The VA does not use credit scoring in their analysis of the loan. Even if you have experienced some financial difficulties in your life that caused your scores to be low but have maintained a good payment record over the past year or so, you may qualify for a VA mortgage loan. This can be a tremendous savings compared to the cost of conventional loans when the borrower's credit scores are low.
VA Mortgage Loans may be refinanced
VA mortgage loans have built in features allowing a loan to be refinanced to a lower interest rate without all of the criteria normally associated with a conventional loan. This is called an Interest Rate Reduction Loan; the veteran can secure a lower interest rate without any credit checks, appraisal, and income or asset verification and can roll the costs of the transaction into the loan so there are no out of pocket costs.
VA also allows a cashout refinance up to 100% of the appraised value of the property. Unlike an Interest Rate Reduction Loan, a cashout refinance is full documentation.
Home Fast Funding offers Veterans a wide range of investors to compare for VA financing terms and full access to the programs benefits.realtors Apply for a VA loan today by contacting a Home Fast Funding Loan Consultant
Here are the items you will need when applying for a VA loan:
- Copy of your DD214 if separated from the military (see below for instructions to request if you do not have a copy)
- Completed Request for COE form 26-1880
- Statement of service from your commanding officer if you are active duty
- Your sCertificate of Eligibility (COE). Your Loan Consultant can help you get this.
Requesting Your DD-214
1. Digital Express
If you need your DD-214 quickly, you should request the services of a DD-214 express service. There are numerous services found online, and there is a usually a fee associated. But if you need your DD Form 214 in a hurry, expedited service is a great option.
2. Request your DD-214 online
If you don’t need your DD-214 right away, you can request it online directly from the National Personnel Records Center (NPRC). This option allows you to complete the necessary information online through eVetRecs, NPRC’s online request system.
3. Request the DD-214 by fax
You can also request DD-214 duplicate copies directly from the National Personnel Records Center by faxing a completed and signed SF-180 form to fax number 314-801-9195.
4. Mail in your request
Mail a written request for your DD214 to:
National Personnel Records Center
Military Personnel Records
1 Archives Drive
St. Louis, MO 63138