The US Department of Veteran Affairs created a military loan guarantee program to assist returning veterans in purchasing homes called the VA Loan. This VA mortgage program is available directly through banks and mortgage companies and guaranteed by the US government. A VA home loan is a zero down home loan that allows home buyer to purchase a home with added flexibility and low monthly payments.
For more information on a VA Loans in Michigan call 1-800-555-2098 or apply online today!
Starting January 1st, 2020, the Veterans Administration has removed the maximum loan amount cap for borrowers will full entitlement. VA does not set a cap on how much you can borrow to finance your home therefore you can borrow very large loan amounts with no down payment required.
For more information on the Max VA loan amount read: VA Circular 26-19-33 Regarding Max VA Loan Limits
VA loans offer many benefits over conventional mortgages in regards to down payments, mortgage insurance requirements and qualifications. VA loans allow for no down payment mortgages verse conventional mortgage which may require up to a 20% down payment.
Mortgage insurance is not required for the program while PMI or mortgage insurance is required on conventional mortgages if a borrower does not have 20% equity. Lastly VA loans are backed by the government which adds security to banks and mortgage companies and makes qualifying for a VA loan much easier.
A VA home loan is a mortgage strictly for veterans of war and those who still serve in the U.S. Military. Veterans must meet va loan requirements for service in active duty, reserves or National Guard.
Those who qualify can use their military benefits to purchase a home with no down payment and have flexible qualifying guidelines. The Veterans Administration guarantees the mortgage which allows lenders to offer low mortgage rates for VA loans. We offer 30 Year Fixed VA Loans and 15 Year Fixed VA Loans.
The first step to qualifying is to request a Certificate of Eligibility (COE) from the Veterans Administration. This certificate will confirm that you have served the required time in the military and are eligible for a VA Loan.
This may be returned instantly to your mortgage company or it may take 5-10 business days to process. The COE will confirm if the veteran was active duty, reserve or national guard or has a service connected disability to waive the VA's Funding Fee. Once this is confirmed your loan officer will help pre-approve your for a VA mortgage and you can being the home buying process.
There are several benefits to VA home loans for home buyers. With no down payment requirement for VA loans a home buyer may be able to buy the home of their dreams with very low mortgage payments. Mortgage rates are very competitive and home loans do not require mortgage insurance (PMI).
Eligible Service Members or their surviving spouse can apply for a financing with private lenders that offer VA financing.
Choosing a VA Home Loan can save you thousands of dollars over other mortgage programs. Take advantage of your VA benefits. You have earned it!