Veteran Affairs or VA Mortgages

VA LoansVA Loan:
Designed to offer long-term financing to American veterans, VA mortgage 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.

Here's how it works:

  • 100% financing without private mortgage insurance or 20% second mortgage.
  • A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA. Vets with a service related disability may have the funding fee waived.
  • When purchasing a home, veterans may borrow up to 100% of the sales price or appraised value of the home, whichever is less.
  • When refinancing a home, (whether to get cash out or to lower the rate/payment)veterans may borrow up to 100% of appraised value in order to refinance where state law allows.

Here are some unique features of a VA Mortgage

  • 100% Financing Available for purchase & Rate & Term or Cash-out Refinances on loans up to $417K
  • Must be able to obtain a Certificate of Eligibility from the Veterans Affairs office. (We will request if the borrower provides us with their DD214)
  • VA Funding Fee may be waived if the Veteran has a service related disability
  • 620 Minimum FICO score for Purchase Transactions
  • 640 Minimum FICO score for  ALL Refinance Transactions
  • No reserve requirements (May be a compensating factor)
  • No Appraisal program available for VA to VA Refinances (IRRRLS)
  • No Minimum Reserve Requirements (Except in dealing with multiple units and rental properties)
  • No Monthly Mortgage Insurance (Even with less than 20% down)
  • 36 Month Seasoning Required for past Foreclosure or short sale (Start from foreclosure sale date)
  • 24 Month Seasoning Required for a past Bankruptcy. (Start from discharge date)  

Reasons to consider a VA Mortgage

  • Borrower is a qualifying veteran
  • Borrower does not have 20% to put down
  • Generally lower rates than conventional mortgages