The loans available for buying homes changes frequently, and knowing the ins and outs of loans ensures buyers get the best loans possible for their situation. One of the best loans (if you qualify) is the VA Loan. The VA Home Loan program, founded in 1944 as part of the GI Bill has roughly a total of $437 billion worth of loans around 2021.

VA Loans are guaranteed by the US Department of Veterans Affairs, and are available for service men and women upon discharge from active duty. These loans offer veteran homeowners purchase money financing, with no down payment required. The borrower may be responsible for closing costs associated with the loan, but those costs are usually lower than the down payment on a regular mortgage.

Qualification for these loans is based primarily on military service and not on your credit score or debt-to-income ratio. And though you'll need to meet some basic requirements, such as working with a real estate agent affiliated with the program and using a lender who will provide a VA loan, it's still easier to get VA loans than traditional mortgages.

How VA Loans Work

VA loans are limited to owner-occupied, primary residences. In some situations, a VA loan can be used for a second home but not as an investment property.

There is no down payment required and there is no mortgage insurance premium charged, which makes this program extremely cost-effective. VA home loans also offer lower closing costs, highly competitive interest rates, and carry no penalties if the loan is paid off early!

 A loans are backed by the government, which means there is little risk to the lender for making this type of loan. Credit     scores can be as low as 580; however, VA applicants must meet VA's basic eligibility requirements (which may include providing    proof of good credit).

VA home loans require borrowers to attend pre-loan counseling, which is provided by VA-approved housing counseling agencies.To get the maximum benefit from a VA home loan, it's important to understand how the program works and what other  financial tools are available to military members and veterans.

VA Loan Benefits

Veterans and military members qualify for several loan benefits when they finance with a VA Loan:

● No down payment required!!

● No monthly mortgage insurance premiums (MIP) for most borrowers.

● 100% financing is allowed for borrowers who have compensable service-connected disabilities, with no money out of pocket to purchase a home.

VA Loan Requirements

To be eligible for a VA home loan, you must meet the following requirements:

● You must have served during a period of war or conflict, or be currently serving in the military.

● You must have served at least 90 days (of which at least 1 day was during a period of war or conflict) and be discharged under conditions other than dishonorable.

● You must not have any delinquent federal debt.

● You must have a Certificate of Eligibility issued by VA, showing current credit and character requirements are met.

To see if you qualify for a VA loan, contact your local lender or reach out to us for lender recommendations! Your dream home may just be a heartbeat away!