05/01/2023
Looking to buy a home but struggling to come up with the down payment? VA loans may be the solution you're looking for. Here's everything you need to know about them:
VA loans are a type of mortgage loan that are offered to eligible veterans, active-duty service members, and surviving spouses.
They are backed by the Department of Veterans Affairs (VA), which means that lenders are protected against loss if the borrower defaults.
VA loans have several benefits, including no down payment requirement, lower interest rates than conventional loans, and no private mortgage insurance (PMI) requirement.
Eligible borrowers can use VA loans to purchase a primary residence, refinance an existing mortgage, or make home improvements.
To be eligible for a VA loan, you must have served on active duty for at least 90 consecutive days during wartime or 181 days during peacetime, or have served in the National Guard or Reserves for at least 6 years.
You'll also need to have a Certificate of Eligibility (COE) from the VA, which verifies your eligibility for the loan.
VA loans have a funding fee, which is a one-time fee that can be rolled into the loan amount. The fee varies depending on the type of loan and your military status.
The VA doesn't set a minimum credit score requirement, but lenders may have their own requirements.
VA loans are a great option for eligible borrowers who want to buy a home with little to no down payment and lower interest rates. If you think you might be eligible, talk to a lender who specializes in VA loans to learn more.
