VA Mortgages

What is a VA Loan?

VA mortgage loans were started in 1944 with the Servicemen's Readjustment Act. Signed into existence by President Franklin D. Roosevelt, the law was aimed at helping veterans of WWII purchase homes, who otherwise, were not able to qualify through regular mortgage loans. Today, the VA loan program helps military veterans, active military members, and sometimes military spouses, purchase a home with little to no money down. The loan is insured by the Department of Veterans Affairs (VA) but it is important to remember that the VA is not a lender and does not act as such. You will need to locate a lender that is approved to work with VA loans such as First Rate Mortgage.

Benefits of a VA Loan

• No private mortgage insurance - Because your VA loan is federally insured, you don't need to pay for private mortgage insurance
• Limited closing costs - The VA loan program prohibits lenders from charging you over a certain amount for closing costs.
• No penalty fees - Under the VA home loan options, you cannot be charged a penalty if you pay off your mortgage early.
• VA assistance - if you run into financial problems later on, the VA program may be able to help you meet your mortgage payments.
• No down payment - if you meet the credit and income guidelines, you may not have to put any money down on your home purchase.
• You can reuse the VA loan program for your next home if you decide to sell your current home.

VA Loan Requirements

In order to qualify for a VA loan you will need to show the following

• The home will be your primary residence.
• A Certificate of Eligibility.
• You are the un-remarried spouse of a military service member who died while in service, is missing in action, is a prisoner of war, or died from a service related injury/disability.
• You have served as a full participating member of the Selected Reserves or National Guard for at least 6 years
• Your credit report. Bad credit can affect your ability to be approved for the VA loan program.
• Proof of stable income.

How do I Get a Certificate of Eligibility?

• Apply through your lender. The easiest way to apply for your certificate of eligibility is to have your lender do it for you. It takes only minutes and can be accomplished online.
• Online/mail. If you have not chosen a lender yet but would like to receive your certificate, you can go to the VA website and apply online or you can mail in the necessary form.