VA Loans
A VA Mortgage for the Home You Buy
Buying a home is one of the biggest and most important decisions you will ever make. We understand that and want to make the process as easy as possible. Whether you are a first-time homebuyer or are experienced with the process, we're here to make your home buying journey a great one.
Since 1944, when home loan guarantees were part of the original GI Bill, the VA has guaranteed more than 18 million home loans worth over $911 billion. In 2008, 180,000 veterans, active duty servicemembers, and survivors of veterans received VA home loan valued at about $36 billion. More than 90 percent of those VA loans were no-down payment loans.
The VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence without putting any money down towards the sale price of the home, as long as that sale price does not exceed the appraised value of the home. Veterans do need money towards closing costs as well as earnest money, which the seller generally requires when a sales contract is signed. Closing costs may be paid by the seller, which can be negotiated when the sale price of the home is set.
Just Follow These Simple Steps
- Use the Debt to Income Ratios to figure out how much you can afford to pay for a home.
- Get pre-approved on your home loan. Knowing that your mortgage loan and credit report are already approved will let you look for your new home with confidence. Also, a pre-approval lets the seller know that your offer is solid and that you're a serious buyer.
If 100% financing isn't enough, there are even more benefits to applying for your VA home loans for veterans who are ready to purchase a home:
- VA home loans are assumable, provided the person assuming the loan is qualified.
- Veterans' closing costs are limited by VA, making sure you won't be asked to pay more than a fair price for closing costs.
- You have the VA behind you offering additional assistance if you ever find you are having problems making your home loan payments, at any time in the future.
- Veterans can prepay their VA Home Loans without a penalty.
VA Loan Articles
Read About News, Updates, and Guidelines
Do you have outstanding issues on your credit score that are still unresolved? You'll need to start the process of fixing those problems and get them resolved before it's safe for you to apply for a VA mortgage loan.
At one time, all homes purchased with a VA loan were considered assumable, but since then the rules have changed. Do you know the circumstances where you are allowed to sell the home and have the seller assume the VA mortgage?
VA mortgage guidelines require two basic methods to determine if you qualify for a loan. The first is a look at your income--called the residual income method. The second qualification criteria is called the debt-to-income ratio.
ADDITIONAL ARTICLES
