For those that have served our country and are looking to buy a home, a VA loan can be a great way to buy! There are a lot of benefits – no down payment requirements, no monthly mortgage insurance are just a couple! Here are some answers to questions about a VA loan.
First of all, who qualifies for a VA loan? You can get a VA loan if you are an active duty service member, a veteran or a surviving spouse of a veteran. You do need to get a Certificate of Eligibility (COE) showing you are eligible.
Are there closing costs on VA loans? Just like most mortgage programs, VA loans do have closing costs. However typically you are limited to origination fees of 1% from your lender. There will be title fees, appraisal costs and recording fees. Check with your lender to see what their fees are. There is a VA funding fee, the amount will vary based on different factors. If it’s your first time using the program, you will have a VA funding fee of 2.3%. It can be added to your mortgage so you do not have to pay it at closing. If you have used your VA benefit in the past, the funding fee will increase to 3.6% if you are doing zero down. If you have a VA related disability, your VA funding fee may be waived.
What is the credit score needed for a VA loan? Credit scores are a big concern for many when it comes to mortgages. VA loans do not have a credit score requirement but many lenders do. Most require you to have a credit score of at least 620, some require 640. Remember your credit score can affect your interest rate, so the higher your score, the better.
How many times can I use my VA home loan? You can use it as many times as you want to! You do need to make sure your VA entitlement has been restored. So for many, you need to sell your home before you purchase the next one. If you have paid off your VA loan, but still own the home, you can get your entitlement restored.
Can you refinance a VA loan? Yes, you can. You can do a cash out refinance or an interest rate reduction loan, both are options depending on what your needs are.
The first step to qualifying for a VA loan is to meet with a loan officer and see what you can qualify for. For those that have a VA related disability, you may also save money on your property taxes in Minnesota. Once you buy your home, you can apply with your county and see if you can get your property taxes reduced. A VA loan can be a great way to purchase a home!
I also want to say thank you to all those that have served our country. I hope you have a wonderful Memorial Day Weekend! I appreciate the sacrifices you and your family have made for our country. Thank you!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website