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VA Home Loan

The VA home loan is for current and veteran service members, and eligible spouses. VA loans have competitive interest rates and usually require no down payment. Only qualified U.S. veterans, active-duty military personnel and some surviving spouses are eligible for a VA home loan.

You must live at the property.

The VA home loan won’t help you buy an investment property or vacation home. The VA requires that you occupy this home as your primary residence, generally within 60 days of closing.

BUT, if you’re able to purchase a duplex or multi-unit property you can certainly live in one unit and rent the others out.

It is important to note - the VA does offer a few exceptions to the 60-day occupancy rule. For example, you’re retiring in 9 months, or you are currently deployed.

No Renovations

If you’re planning to buy a major fixer that needs a lot of TLC the VA home loan may not be for you as there are a few basic requirements the VA has regarding condition.

It’s primarily designed for properties in move in ready condition, including single family homes, townhouses, condos and even some multi-unit properties. FYI: multi-family houses have some additional requirements with regards to reserves, rental income, etc.


NO Mortgage Insurance

Mortgage insurance or PMI is a monthly fee you typically pay with other loan programs if you’re not putting at least 20 percent down. With the VA home loan you will not have any monthly mortgage insurance EVER which can mean a savings of hundreds of dollars per month.

A Funding Fee will apply.

While there’s no monthly mortgage insurance with VA home loans there is a fee called a funding fee, which can be quite large. This fee helps the VA going strong and is required on both purchase and refinance loans. The good news: it can be rolled into the loan amount and waived entirely for those brave folks with service-connected disabilities.

The VA Doesn’t Lend Money

You will get your loan through a mortgage broker or bank, but the VA will provide a nice little guarantee of up to 25% of the loan amount to the bank. It’s this guarantee that gives lenders the peace of mind and confidence to issue these high rates and terms.

More relaxed credit requirements.

One of the great things about the VA home loan is that having a low credit score won’t automatically disqualify you from getting a VA loan. The waiting period after a Chapter 7 bankruptcy can be as little as two years compared to four years on a conventional loan.

Not a one-time benefit.

You can use your full VA entitlement as many times as you want, if you pay off the existing VA loan each time. There are even a few cases where you may be able to obtain more than one VA home loan at one time but it’s best to call us to discuss these requirements.

Not just anybody can co-sign.

Many loan programs let you get a loan with just about anybody. Unfortunately, that’s not the case with the VA loan. Having a co-borrower who isn’t your spouse or another veteran with VA home loan entitlement will require a down payment.

No pre-payment penalties EVER.

Yes, you can send extra payments any time you want, saving you a ton in interest over the life of your loan. Even an extra $100/month can save tens of thousands in interest over the life of the loan.

VA home loan