VA Loans are Designed to offer long-term financing to veterans. VA loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
What are VA loans?
VA loans were created as a benefit to help Veterans obtain home purchase financing at reasonable terms. The loans are backed by the VA which allows these loans to be offered at competitive interest rates with flexible qualifications. In most cases, mortgage borrowers can be approved with a no down payment and a credit score as low as a 620.
Apply for a VA loan today!
VA Loan Advantages
VA loans have many benefits and can be used for financing new home purchases, refinancing an existing mortgage and consolidating existing debt. For those consumers looking to refinance there are streamline and cash out options up to 100% loan to value. Streamline refinance options can lower your monthly payment and interest rate while cash out refinances can be used for home repairs. One of the great options of a VA loans is no down payment and sellers are allowed to pay the buyers closing costs if both parties agree. Another benefit of a loans is a higher debt to income ratio is allowed as well as a lower down payment compared to other loans. VA loans also can be approved with a prior bankruptcy or foreclosure.
VA Loan Limits
Conventional VA loan limit Jumbo VA loan limit
$424,100 $1,000,000
Requirements For VA Loans
VA loans are backed by the VA and have several requirements that borrowers must meet to become eligible. The VA does not set a minimum credit score requirement although most lenders have a minimum credit score of 620. A debt to income ratio of 43% is required to qualify for an FHA loan however it may be higher with a better credit score or higher down payment. The VA requires a funding fee which can be financed as part of the loan. The VA loan funding fee is dependent on the down payment: Less than 5 percent – VA Loans closed on or after November 22, 2011 and before September 30, 2024 the funding fee is 2.15%. At least 5 percent but less than 10 percent – VA Loans closed on or after November 22, 2011 and before September 30, 2024 the funding fee is 1.5%. 10 percent or more VA Loans closed on or after November 22, 2011 and before September 30, 2024 the funding fee is 1.25%.
After establishing that you are eligible, you will need a Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. This page describes the evidence you submit to verify your eligibility for a VA home loan and how to submit the evidence and obtain a COE.
Service Requirements
You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. The eligibility requirements to obtain a COE are listed below for Servicemembers and Veterans, spouses, and other eligible beneficiaries.
VA home loans can be used to:
Buy a home, a condominium unit in a VA-approved project
Build a home
Simultaneously purchase and improve a home
Improve a home by installing energy-related features or making energy efficient improvements
Buy a manufactured home and/or lot
To refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate
To refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home
Eligibility Requirements for VA Home Loans
Service during wartime:
World War II – September 16, 1940 – July 25, 1947
Korean War – June 27, 1950 – January 31, 1955
Vietnam War – August 5, 1964 – May 7, 1975
Service Requirements:
At least 90 days active duty – with other than dishonorable discharge
Less than 90 days active duty – if discharged for a service-connected disability
Gulf War – August 2, 1990 – to be determined
Service Requirements:
24 months continuous active-duty – with other than dishonorable discharge
At least 90 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
At least 90 days active duty – and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
Less than 90 days active duty – if discharged for a service-connected disability
Service during peacetime:
All – July 26, 1947 – June 26, 1950 and February 1, 1955 – August 4, 1964
Enlisted – May 8, 1975 – September 7, 1980
Officers – May 8, 1975 – October 16, 1981
Service Requirements:
At least 181* days continuous active duty – with other than dishonorable discharge
Less than 181 days active duty – if discharged for a service-connected disability
If you were separated from service:
Enlisted – After September 7, 1980
Officers – After October 16, 1981
Service Requirements:
24 months continuous active duty – with other than dishonorable discharge
At least 181 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
At least 181 days active duty – and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
Less than 181 days active duty – if discharged for a service-connected disability
Get Prequalified Today!
Work with an VA loan specialist at Dan O'Brien | Emerald Mortgage Partners. We specialize in VA loans for home buyers and those looking to refinance. If you are looking to purchase a home in Lake Mary, Longwood or Sanford as well as the whole state of Florida contact Dan O'Brien | Emerald Mortgage Partners today at (407) 392-1904.
