GET EDUCATED ON VA LOANS AND
TAKE COMMAND OF YOUR FUTURE.
Our resource hub has everything you need to nerd out with us on VA loans and the lending process.
The First Step:
Understanding Eligibility
With no loan limit or base credit score requirement*, a VA loan is a veteran’s best ally when it comes to buying, refinancing, or building a home. Your eligibility for a VA-backed loan is dependent on your status as an active-duty service member, a veteran, or a surviving spouse. Click below to read more about the requirements.
*Loan approval is subject to individual lender requirements, eligibility, and property qualifications.
VA LOANS: A WORLD OF BENEFITS FOR YOUR FAMILY
-
One huge advantage of VA loans is that they have ZERO down payment required for eligible service members with full entitlements. While it can take a family years to save the 3% minimum down payment most conventional loans require, a VA loan enables your family to move into the home of your dreams sooner rather than later.
-
VA loans typically have the lowest interest rates of all loan types on the market, which means you can get a larger loan or enjoy more savings. Interest rates are subject to frequent changes, so reach out to us to learn more.
-
The VA loan program limits closing costs and grants you the right to prepay your mortgage without a penalty. Closing costs can be negotiated to be paid by the seller, lender, or other party.
-
With your full entitlement available, there are no limits on housing type (condo, house, new construction, etc.) or size as long as you qualify for the monthly mortgage payment. Even if your entitlement is already in use, we can pull your Certificate of Eligibility (COE) and strategize how to best leverage your remaining entitlement on your next purchase.
-
Some families using conventional loans can get stuck with the added costs of Private Mortgage Insurance (PMI). With a VA loan, you get to avoid a PMI expense, allowing you to put those dollars into your new home and enjoy lower monthly payments.
-
The VA loan process accepts a diversity of income types, including W2 earnings, self-employment, and more. Receiving disability compensation from the VA? That counts as qualifying income when applying through the VA loan program!
-
Thanks to the Dodd Frank Act of 2010, homebuyers with a VA loan are not subject to penalties for paying off their loan early.
-
As a way to make homeownership more accessible to veterans, the VA loan program provides greater flexibility around credit underwriting requirements. While credit score minimums can vary by lender, VA loans often feature much lower score requirements than in conventional loans. Similarly, VA loans don’t come with a strict limit for debt-to-income ratio for buyers and are more forgiving regarding negative events on your credit report.
While the VA does not set a minimum credit score requirement, most lenders establish their own credit score and underwriting guidelines. Loan approval is subject to individual lender requirements, eligibility, and property qualifications. Not all applicants will qualify. Terms, conditions, and rates are subject to change without notice.
-
With VA loans, there are no additional inspections required, other than termite inspections in specific areas and a water test for properties on an individual water supply. An appraiser registered with the VA will come to your property to ascertain value and determine if any safety issues need to be addressed.
-
Many states offer supportive resources for veterans, including property tax reductions for qualifying families. When you work with The VA Loan Nerd, our team will inform you of the specific resources available to you in the state you’ll be living in.
THE DIFFERENT TYPES OF VA LOANS
Whether you’re looking to buy your first home, refinance your existing one, or build entirely from scratch, there’s a VA loan for you! Take a look below to get a sense of what kind of loan you’re looking for. If you’re unsure, contact us to walk through the options together.
Need to chat through the loan type that’s right for you? We’ll dispatch a VA Loan Nerd to help you out.
-
For when you’re looking to buy with a zero down payment.
As a veteran/service member, you can use a VA purchase loan to buy a single-family home, condominium, manufactured home, multiunit properties (like a duplex), or even a new construction—all without a down payment! Note that approval, policies, and guidelines vary by lender.
-
For when you want to refinance and get cash for your home’s equity.
Available to veterans with or without current VA loans, a Cash-Out Refinance Loan allows qualified homeowners to refinance and take out cash from their Home Equity Line of Credit (HELOC). You can typically refinance up to 100% of your home’s value, and homeowners are not required to take out cash with these loans. This means veterans with non-VA mortgages have the opportunity to use this loan type as a basic rate-and-term refinance solution.
-
When you’re renovating your current home or the home you’re buying (up to $75K).
A VA renovation loan allows you to purchase and/or improve a home within the convenience of a single mortgage. This type of loan is particularly useful when you’re looking to buy a home that needs repairs or updates up to $75K in value. Examples of eligible renovations include (but aren’t limited to) roof repairs/replacement, utility upgrades, kitchen/bathroom remodeling, flooring replacement, structural repairs, and energy efficiency improvements.
-
For when you’re building something from the ground up or renovating up to $75K.
Sometimes finding the perfect home means building the perfect home. Construction loans can cover different costs: land, materials, labor, equipment, contractor, permit fees, and more. For this loan type, you’ll want a state-licensed builder, and the loan may be structured to disburse funds in stages matching the construction’s progress. Once your construction is complete, the loan typically converts to a permanent VA mortgage or refinances into an end-VA loan, which involves a short requalifying process for the loan under permanent loan terms.
-
For when you want to refinance an existing VA loan.
One of two of the VA’s refinancing options, this one is the most popular among veteran homeowners. These simple, low-cost refinance loans, in some cases, do not require credit underwriting, income verification, or an appraisal. An IRRRL is only available to veterans with an existing VA loan, and generally requires that refinancing results in a lower interest rate, a shorter loan term, or a move from an adjustable-rate mortgage to a fixed-rate loan. The VA Loan Nerd is here to help you understand how you can use an IRRRL to realize the full financial benefit of this loan type!
ELIGIBILITY CALCULATOR
Before we dive into the application process, let’s find out how much you can afford. Use our mortgage calculator to learn your approximate monthly payment, interest payments, insurance cost, and taxes. If you need guidance to crunch these numbers, don’t sweat it! We’ll be happy to help.