VA Loans are mortgages guaranteed by the US Government for military members who have served our country. With no down payment required, VA Loans are one of the best loan options.
Underwriting requirements are flexible which allows for low credit scores and short wait periods after bankruptcy and foreclosure. We currently offer Zero Down VA loans with as low as a 580 credit score.
Military Veterans, Thank You For Your Service!
VA LOAN BENEFITS
Using VA financing, you can buy a house with no money out of pocket. Using a lender with no fees and negotiating to have the seller pay 3rd party closing costs, and prepaid can truly be a no cost purchase option. Other benefits include:
- Low Rates
- No down Payment Required
- Fixed Rates
- No Lender Fee Options
- Easy Eligibility Requirements
RELATED: Use our VA Loan Calculator to estimate mortgage payments!
STEPS TO GET A VA LOAN
Once you have made the decision to use your VA Loan benefits to buy a home, you can use the steps below to buy a home!
- Call a Loan Officer to review VA Loan Requirements
- Request your Certificate of Eligibility from the VA (COE)
- Receive a VA Mortgage Pre-Approval from your Loan Officer
- Return Required Loan Documents to Complete Your Pre-Approval
- Search for a Home with a Local Realtor
- Submit Your Offer on a Home You Love
- Start the Mortgage Loan Process
- Get a Home Appraisal on The Home Through Your Lender
- Receive a Clear to Close from Underwriting
- Schedule the Loan Closing and Review Final Numbers
- Sign Loan Documents in from of a Notary
- Get the Keys to your Home!
Currently serving or a veteran? You are eligible for special mortgage benefits. Give us a call today at 800-555-2098 or request information below!
What is a USDA Mortgage?
The USDA loan, or Rural Developmental loan, allows for homebuyers to purchase a home with a zero down payment. This is great for people that want to live in a rural area and get a loan that is truly zero down. Benefits of getting a USDA loan is that you may still qualify three years after the discharge date of your chapter 7 bankruptcy and three years after having a foreclosure. The USDA website lists the areas of Michigan that qualify for this loan by county. You can also type in the address on the USDA website to confirm address eligibility as well. Here is the link- https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
What if the House has Repair Issues?
Depending on the issue, Riverbank Finance may be able to help you by using the USDA Mortgage Repair Escrow program. This program allows for the cost of the home to be combined with the cost of the repairs. The cost of the repairs cannot go above 10 percent of the final loan price. The term for a purchase or rate/term refinance using this loan is 30 year fixed. The repairs are required to start within 30 days from the closing date and end within 180 days of closing. Additionally, those interested in this program cannot use a contractor for the repairs with whom they have a conflict of interest with (i.e. family members or friends).
Related: USDA Rural Development Loan Calculator
What are the minimum requirements to qualify for the USDA Loan Repair Escrow Program?
In order to qualify for the USDA Repair Escrow Program you must meet some requirements.
USDA Repair Escrow ProgramThe requirements include:
- A credit score of 620 or higher (at least 2 credit scores must be provided)
- Must obtain an Accept/Eligible or Refer/Eligible recommendation from GUS
- 10% of purchase price
- Get a bid from a licensed contractor for the work to be done.
- Standard USDA guidelines still apply.
Eligible Property Types:
- 1 unit single family residences (no multi-unit properties)
- Condominiums – HUD/FHA, VA, Fannie Mae, or Freddie Mac must approve or accept
- New Manufactured Homes only – singlewide or multi-wide
- Existing manufactured homes must follow guidelines that meet the Existing Manufactured Housing Unit Pilot Program
- Planned Unit Developments
Is there a Limit for the Amount of USDA Repair Escrow?
Yes, the limit for the amount of USDA Repair Escrow is 10 percent of the final loan price. This amount includes the cost of the repairs, reserve costs (1.5 times the cost of the repairs), 2 inspection fees ($165 each), and if required, the costs of permits.
What repairs can be done with the USDA Repair Escrow?
- Carpet / Flooring
- Repairs can be cosmetic
- Or functional like installing a new water heater or buying a stove for the home
What repairs are ineligible for USDA Loan Repair Escrow?
- Roof repairs
- Foundation/structural repairs – the structure of the building may not be disturbed by the repairs
- Electric repairs
- Plumbing repairs
If this looks like the loan for you, please give our trusted loan officers at Riverbank Finance a call at 1-800-555-2098 or apply on our website today!