Who qualifies for a VA loan?

March 30, 2022
Posted in Programs
March 30, 2022 derekevansteam

A Veterans Affairs (VA) loan is a special kind of loan that is government-backed and only available to those who have served our country through military service. VA loans have a handful of amazing benefits that other types of loans don’t carry, and are designed to reward veterans for their dedication to protecting and serving us. We are proud to offer these kinds of loans, and make it our mission to spread awareness of eligibility so that those who qualify can take advantage of the great benefits.

What are the qualifications?

You may be eligible for a VA loan by meeting one or more of the following requirements:

  • You served 90 consecutive days of active service during wartime.
  • You served 181 days of active service during peacetime.
  • You have 6 years of service in the National Guard or Reserves.
  • You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

If you don’t meet any of these qualifications or have questions about eligibility, please don’t hesitate to reach out to us. We can help you figure out what your options are. For example, you may still qualify if you were discharged for hardship, a change in military needs, medical condition or service-related disability, and more.

What are the benefits of a VA loan?

No down payment required. Probably one of the best benefits of the VA loan is that it doesn’t require buyers to put any money down. This allows veteran families to purchase a home without having to spend years and years saving. 

No Private Mortgage Insurance (PMI). Private mortgage insurance or some sort of fee usually gets tacked onto your monthly payment if you don’t meet the minimum down payment requirements. But with the VA loan, you don’t have to worry about meeting any sort of down payment requirement OR paying a monthly mortgage insurance because of it, saving buyers thousands.

Low interest rates. VA loans offer the lowest average fixed rates on the market, typically 0.5 to 1 percent lower than conventional interest rates, according to data from ICE Mortgage Technology. This helps veterans save even more money on their monthly payments. 

Flexible credit requirements. VA lenders do use credit score benchmarks to assess a borrower’s likelihood of defaulting on a loan, but these requirements are usually more lax than they are for conventional mortgages.

Low closing costs and fees. The VA actually imposes limits on how much Veterans must pay in closing costs and fees to make homeownership even more accessible. 

Foreclosure Avoidance. These loans are some of the safest from foreclosure on the market, even with little to no down payment made. The VA works hard to keep veterans in their homes, resulting in a low number of foreclosures. 

No pre-payment penalties. Should you choose to pay off your loan in its entirety before the end of your loan term, you won’t face any fees for doing so.

No Loan Limits. Veterans can borrow any amount using a VA loan. 

And more!

The best way to find out if you qualify for a VA loan

The best way to find out for sure whether or not you can qualify for a VA loan, as well as explore rates and potential monthly payments on loans, is to work with a reputable lender. Our team can go over the list of requirements with you, as well as answer any questions you may have. Drop us a line and we’d be more than happy to chat!