VA Home Loan

VA Loans offer flexible options as either Fixed Rate or Adjustable Rate mortgages.

It is important to note that buyers will still need to qualify for the loan. This means that if you are in a troubling financial position, a lender may want to see you pay down debt or save up money before they are willing to give you the loan. You may also be responsible for closing costs, such as recording the title or paying lawyers to draw up all paperwork. This is negotiable with the seller and something to discuss with your realtor before making an offer on a home.

A VA loan works the same as most other home purchases. The key difference with a VA loan is that the Department of Veterans Affairs requires that all homes purchased through this program meet certain habitability requirements and will send out a home inspector and appraiser to make sure that the home is in good working order and is worth what you are paying.

This step may sometimes cause delays, especially if repairs are needed. This does not necessarily mean that the buyer cannot use the VA loan, just that repairs will need to be done before the home purchase.

What is Required?

Many of the same documents are required for a VA loan such as employment, appraisal and debt-to-income ratio. There are few additional stipulations that are attached to the VA loan process. Buyers may have to bring 3.5% of the purchase price as a down payment or more if they have a credit score below 580. Plus VA loans are only available for the borrower’s primary residence.

Each lender looks at individual applications and may ask for additional documentation or explanations. Credit requirements may also be lower for VA loans, given other factors demonstrate that the borrower is able to manage their money responsibly. They are often able to work with buyers with a lower credit score or shorter credit history.

Other Benefits of a VA Loan

 VA Loans are available in 30-, 25-, 20- and 15-year terms with fixed rates. 5-year adjustable rate mortgage and Jumbo VA loans are also available. You can refinance your VA loan with VA Streamline Refinance with a reduced funding fee and flexible documentation requirements – available for veterans currently in VA loans. VA loans are governed by the U.S. Department of Veterans Affairs and you can pay your mortgage off at any time without pre-payment penalties.

Have questions? Give Us a Call! One of our mortgage specialists would be happy to answer all of your questions.

**Nationwide Mortgage Bankers Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.