VA Loans
For Service Members, Veterans, & Families
Guaranteed by the U.S. Department of Veterans Affairs, VA loans are designed to help service members, veterans, and eligible surviving spouses purchase homes. They often feature competitive interest rates and require no down payment, making homeownership more accessible to military personnel.
VA Loan Requirements
1.
Median Credit Score
While the VA itself does
not set a minimum credit score requirement, lenders typically have their own credit score benchmarks. Borrowers generally need
a satisfactory credit history to qualify for a VA loan.
2.
Military Service Eligibility
Borrowers must typically
be active-duty military personnel, veterans with
a minimum length of service, or eligible surviving spouses. A Certificate of Eligibility (COE) is required to prove eligibility.
3.
Funding Fee
A funding fee to the Department of Veterans Affairs may be required, based on factors such as the borrower’s military status and down payment amount.
4.
Property Eligibility
The home being purchased must meet VA’s minimum property requirements, ensuring
it is safe and structurally sound.
VA Loan Benefits
No Down Payment
One of the most significant advantages is that VA loans typically do not require a down payment. This allows eligible borrowers to finance 100% of the home’s purchase price without needing to save for a large down payment.
No Private Mortgage Insurance
Unlike conventional loans, VA loans do not require a PMI, saving borrowers money each month on their mortgage payments.
Competitive Interest Rates
VA loans often feature competitive interest rates that are lower than conventional mortgage rates, resulting in lower monthly payments and overall savings over the life of the loan.
