VA Loans

What is a VA loan?

The U.S. Department of Veteran Affairs (VA) helps service members, veterans, and eligible surviving spouses become homeowners. They provide a home loan guarantee benefit and other housing-related programs to help families buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.

What are the general requirements to get this type of loan?

VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active-duty service members). Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits. You generally need a mid-fico score of at least 580 and in certain cases your back-end debt-to-income ratio can exceed 50%. For most VA borrowers, minimum down-payments can start as low as 0%. However, you may be required to pay a VA funding fee as part of your closing costs unless you meet certain requirements.

What types of properties can I use this loan on?

Like FHA, standards for property conditions are higher than conventional loans. VA has established Minimum Property Requirements (MPRs) to protect the interests of Veterans, lenders, servicers, and VA. These loans can be used on a wide array of property types including single-family homes, VA-approved condos, multi-units, and manufactured homes.

Is there mortgage insurance for this type of loan?

Mortgage insurance is not required on any VA loans. However, based on your eligibility, a funding fee may need to be paid instead. The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan since the VA home loan program doesn’t require monthly mortgage insurance.

Who are these loans best suited for?

These loans are exclusively for active-duty and veteran military service members and some surviving spouses who hold the required VA mortgage benefits. They are a great option for borrowers with good to excellent credit, a wide-range of debt-to-income ratios, and funds for closing costs and potentially the VA funding fee. These loans are exclusive to primary residences with some exceptions.

Team TLC Lending Loan Officer

Team TLC Lending

View All Testimonials