complete guide to VA Loans

Overview

An VA loan is a mortgage loan that is originated by a VA-qualified lender and is guaranteed by the U.S. Department of Veteran Affairs (VA). The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment.

The original Servicemen’s Readjustment Act, passed by the United States Congress in 1944, extended a wide variety of benefits to eligible veterans. There were several revisions enacted thereafter to extend its coverage to military personnel and servicemen. As October 26, 2012, the Department of Veterans Affairs announced it has guaranteed 20 million home loans since its home loan program was established in 1944 as part of the original GI Bill of Rights for returning World War II Veterans.

Zero down payment and no required private mortgage insurance (PMI) are most attractive features of VA loans.

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Pros	Cons
Zero down payment No PMI Down payment can be in form of gifts Lower FICO score	No investment purchase allow Require certificate of eligibility (COE) Require VA funding fee Only one active loan allowed

Because of no PMI and zero down payment, VA loans are very attractive to many eligible veterans. For those veterans who are able to put down at least 20% down payment, conventional loans could be a better alternative since they have no funding fee. If you are not sure if an VA loan is right for you, talk to our licensed mortgage loan originators. We will analyze your scenario and advice which loan product is better for you.

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Must be a veteran who served the minimum duty with other than a dishonorable discharge

Active duty with at least 181 days of duty

Un-remarried surviving spouse of eligible veteran

Reservists/National Guard

Joint loans involving a veteran and a non-veteran who is not the veteran’s spouse (VA prior approval required. Refer to Special Requirements/Restrictions for more details)

Joint loans involving two unmarried veterans (VA prior approval required. Refer to Special Requirements/Restrictions for more details)

Inter Vivos Revocable Trust is allowed for owner occupied property only

Here are some links to Department of Veteran Affairs to check for your eligibility.

VA Loan Eligibility

Order Your COE

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VA Interest Rate Reduction Refinance Loan (IRRRL) is also known as VA Streamline Refinance. To eligible and qualified borrowers, VA streamline refinance bring many benefits.

No Appraisal No Assets Verification No Income Documentation Required No or Reduced Funding Fee Available

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