VA Purchase Loans
A VA loan is a great option for US Veterans to purchase a home. This program allows Veterans to purchase a home with $0 down. Many times, you can even get the seller to pay some or all of your closing costs. This means that in many instances, you can buy a home with little or no money out of pocket. The best part is, the VA does not require any monthly mortgage insurance, so you will have a very low monthly payment when compared to other loan programs.
Who qualifies for a VA loan?
Veteran Status: Veterans that were honorably discharged and meet the requirements listed here are eligible for a VA loan.
Credit: Since your loan is backed by the Department of Veterans Affairs, VA loans offer an easier approval process than other loans. The VA understands the great strain and challenges that some veterans face when they return home. Many times, past credit problems can be overlooked on a VA loan. Prior late payments, bankruptcies, and even foreclosures are permitted, as long as you have subsequently established positive credit. We only require a 620 credit score for a new VA loan.
Income: The VA does not have any minimum or maximum income requirements. They do require that no more than 41% of your income goes to pay all of your monthly debts. Don’t worry if you don’t know how to calculate this or if you are concerned that you are over these ratios. A loan officer can help guide you through the process and many times, we can approve you for a loan even if you exceed the FHA guidelines as long as you have some compensating factors.
Assets: The VA does not require that you have any assets or reserves to purchase a new home. Any closing costs can be paid by the seller by using a seller credit, or you can pay them yourself.
Property: Most single family, condos, planned urban developments (PUD), townhouses, and even manufactured homes qualify for VA financing.
Why use a VA loan?
No Down Payment: A VA loan is a great tool for Veterans with no money down or even a small down payment
Limited Credit History: If you only have a few pieces of credit, the VA is a great option.
Prior Credit Problems: If you have had some issues in the past that you have resolved, the VA understands.
Great Refinance Options: Once you are into an VA loan, you have the option of lowering your rate with a VA Interest Rate Reduction Refinance Loan or “IRRRL”. This program gives you the option of lowering your rate to the lowest market rate every time rates drop without having to re-qualify.
Government Guaranteed: Since the loan is guaranteed by the VA, the mortgage servicer is required to originate and service the loan according to the VA’s strict standards. The VA’s mission is to protect and defend it’s veterans after they have protected and .
How Do I Get Started?
Please contact a loan specialist immediately to get the process started. We can provide you with a no-cost, no-obligation, pre-approval and closing cost estimate! There are 3 ways to do this:
- Call us toll free at 800-955-8965
- Fill out our contact form
- Chat live with a loan officer now
There are a few documents we need you to collect to process your loan. Do not worry if you cannot locate all of the documents, we should be able to help you. We will need:
- Drivers License
- 2 Year’s W-2s
- 30 Day’s Paystubs
- 2 Month’s recent Bank Statements
- DD-214 – Certificate of Release or Discharge from Active Duty
- Certificate of Eligibility
- Homeowners Insurance Declaration Page or Agent’s contact info
- Purchase Contract (If you are already under contract)
- Copy of Deposit Check (If you are already under contract)