Since Veteran’s Day is on Monday, November 11th, I thought it was a great time to remind people that VA loans can be a great way to buy a home! VA loans are a benefit offered to veterans and active duty service members. A VA loan allows you to purchase a home with zero down.
Here are some of the benefits of a VA loan:
- No down payment
- No limit on the loan amount
- Fewer closing costs
- No monthly mortgage insurance
How do you qualify for a VA loan? There are minimum service requirements for a VA loan. Active duty service members and veterans must meet one of the following conditions:
- At least 90 consecutive days of active service during times of war
- At least 181 days of service during peacetime
- At least six years of service in the National Guard or Reserves
Spouses of military members who died in the line of duty or suffered a major disability may also qualify for the VA loan.
When you meet with a loan officer, they will ask for your DD214 and use that to request a Certificate of Eligibility. The COE will let us know what your entitlement is and if you are required to pay a VA funding fee. If you have any service related disability, the VA funding fee may be waived. The VA funding fee will vary, it can range from .5% to 3.3% and is determined by your down payment. It can be added to your mortgage or paid in cash at closing. There is no monthly mortgage insurance, just the one time VA funding fee.
VA loans can be used to purchase a home or refinance an existing loan. If you currently have a VA loan, you may qualify for a VA Interest Rate Reduction Refinance loan. It is a loan that allows you to refinance a VA loan to a lower rate and an appraisal is not required. If you are looking at building a home, you may want to use a VA one time construction loan. This allows you to use the VA loan to build a home and pay off any existing liens attached to the property by rolling them into the new VA loan.
For more information or to see if you qualify for a VA loan, contact a lender that works with VA loans. I’ve been working with VA loans for years and love to help our veterans purchase homes using a VA loan.
In honor of Veteran’s Day, I want to thank all those that have served in our military! I know it can be a huge sacrifice for you and your family. Thank you!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
