VA Loan Qualifications
VA Mortgage Lenders
First Time Home Buying
100% Home Loans - No Money Down Mortgage
Our VA lenders offer 100% mortgages for first time home buying or refinance to qualified veterans online. The United States Department of Veterans Affairs provides a loan guarantee service to honorably discharged veterans of the United States military. Service member, their unmarried surviving spouses and veterans can obtain cost-effective home financing with VA mortgage loans that enable purchasing of up to 100% loan to value (LTV), 90% cash-out refinancing on an existing home or 100% refinancing on an already-existing VA loan. We offer several solutions for first time home buying options for military borrowers.
These no money down mortgages are made by private lenders, but insured by the VA. This means that if the borrower defaults on the loan, the VA will guarantee or secure it. This protects the lender from loss, which keeps the interest rates low for the buyers.
VA Mortgage Loans - 100% Home Financing Options for Veterans
Unlike the Federal Housing Administration (FHA), the VA doesn't charge the borrower any private mortgage insurance (PMI), and you don't need a 20% second mortgage (piggy-back loan).
Instead, the VA funding fee of 0 to 2% of the loan amount is paid to the VA and is allowed to be financed. Veterans with a service-connected disability of at least 10% are exempt from the funding fee. However, qualified disabled borrowers are not charged any funding fees on VA home buying loans.
There are no actual loan limits for a VA loan, but most lenders limit the amount that can be borrowed to $417,000 and no more than 100% of the VA-established reasonable value of the property (determined by the appraiser hired by the VA). Loans can be for single-family or owner-occupied multifamily homes, including new construction. Military veterans have a significant advantage with 100% loans.
In addition to veterans, VA loans are accessible to active duty and reserve personnel as well as the unmarried spouse of a veteran who died in service or from a service-related disability. The VA has a very detailed list of its rules for eligibility based on status, time served, and whether service was during peacetime or war, among others.
The Government National Mortgage Association (Ginnie Mae) securitizes VA loans, FA loans and other loans insured by departments of the United States government. These securities carry the guarantee against default of the United States government, which is why they are becoming so popular during this foreclosure epidemic. They offer safeguards for lenders not provided by conventional loans, while providing a quality product to the cash strapped borrower who can make mortgage payments but just can't afford the 20% down payment that conventional loans require.
The active duty service member, unmarried surviving spouse or vet should know the advantages and disadvantages when comparing VA mortgage loans to conforming home loans. When applying for a VA loan you must have your certificate of eligibility and the VA mortgage lender will likely access your credit report and request income documentation like pay-stubs and W2's. If you don't have your Certificate of Eligibility, you can either get it from the VA directly or through its lender, who can apply for the certificate by using the Automated Certificate of Eligibility (ACE) system.
VA Loans for Native Americans
The VA also offers veteran mortgage loan for Native Americans. It is called the Native American Direct Loan (NADL), and it enables eligible Native American veterans to obtain a loan to buy, build, or improve upon a home on Federal Trust Land. To obtain a NADL, the law specifies that the applicant must be a qualified Native American veteran with available entitlement. Also, the tribal organization or another suitable Native American financial group must participate in the VA direct loan program. Other requirements can be found online.