Who is more deserving of the American Dream than those who have served our country by protecting it? And yet, many Veterans, their spouses and active service members are not aware of the benefits available to them when it comes to purchasing a home or refinancing an existing mortgage.
Qualifications for VA Loans
Establishing eligibility to qualify for a VA Loan is easy and can generally be accomplished with a simple phone call. You’ll want to be sure to have the proper discharge paperwork on hand before you speak with a loan officer. To receive a Certificate of Eligibility (COE) you’ll need to have been honorably discharged, have served a minimum of 90 consecutive days of active duty in war time or a 181 days’ active duty during peace time. For service members in the National Guard or Reserves a minimum of 6 years’ service is required. The spouse of a service member who died in the line of duty, or as the result of a service related injury, is also eligible provided they have not remarried.
VA Loans Offer Flexibility and No PMI
Because VA Loans are backed by the federal government’s VA Home Loan Guaranty, lenders are assured in the event of default, so your loan would be covered. With less risk, the lender is able to be considerably more flexible with loan terms. Qualified buyers may borrow up to $417,000 with no down payment and finance up to 100% of the purchase price. There is no monthly mortgage insurance premium (allowing for lower monthly payments) and the VA Loan Guarantee fee may be rolled into the financing.
More Options with VA Loans
Vets can purchase or build a new home or condo, obtain a lower interest rate with an Interest Rate Reduction Refinance Loan or IRRRL, or use the equity in their home to obtain a cash-out refinance to consolidate debt, make education payments, or make energy-efficient improvements to their home all with a minimum FICO score of 580.
Buying a home or refinancing shouldn’t be a battle for those who’ve risked their lives, or for the spouse who lost a loved one to preserve our freedom. The VA loan program is one way we can say thank you for their courage and commitment.