If you've served in the military, you've earned one of the best mortgage benefits available anywhere: the VA loan. With zero down payment, no private mortgage insurance, and competitive rates, it's no wonder VA loans are the top choice for eligible veterans and service members. Let me walk you through everything you need to know.
The Incredible Benefits of VA Loans
Zero Down Payment
This is the big one. While most loans require 3-20% down, VA loans allow you to finance 100% of the home's value. On a $400,000 home, that's $80,000 you don't need to save. This single benefit helps veterans buy homes years earlier than they otherwise could.
No Private Mortgage Insurance (PMI)
Conventional loans require PMI when you put down less than 20%—typically $100-300/month. VA loans? No PMI ever, regardless of your down payment. That's hundreds of dollars saved every single month.
Competitive Interest Rates
Because VA loans are backed by the Department of Veterans Affairs, lenders take on less risk. That means you often qualify for lower rates than conventional borrowers—even with less-than-perfect credit.
More Flexible Credit Requirements
While there's no official minimum credit score for VA loans, most lenders look for 620+. However, the program is more forgiving of past credit issues than conventional loans.
Limited Closing Costs
VA loans limit what fees lenders can charge, and sellers can pay up to 4% of the loan amount toward your closing costs.
🎖️ Did You Know?
VA loan benefits don't expire and can be used multiple times throughout your life. You can even have two VA loans at once in certain circumstances!
Who Qualifies for a VA Loan?
- Active Duty: Currently serving with 90+ continuous days
- Veterans: Served 90+ days during wartime OR 181+ days during peacetime
- National Guard/Reserves: 6+ years of service OR 90+ days of active duty
- Surviving Spouses: Of veterans who died in service or from service-related disabilities
The VA Funding Fee
VA loans do have a one-time funding fee (typically 2.15% for first-time use with no down payment). However:
- It can be rolled into your loan
- It's waived for veterans with service-connected disabilities
- It's still cheaper than years of PMI payments
Getting Your Certificate of Eligibility (COE)
To use your VA loan benefit, you'll need a Certificate of Eligibility. Don't worry—I can help you obtain this quickly through the VA's online system. You'll need your DD-214 (discharge papers) if you're a veteran.
VA Loan Limits
Great news: as of 2020, there are no loan limits for borrowers with full entitlement! If you have remaining entitlement from a previous VA loan, limits may apply, but we can work through that together.
Ready to Use Your VA Benefits?
Thank you for your service. Let me help you take advantage of the benefits you've earned.
Get Started Today →Have questions about your VA loan eligibility? Call me at (847) 863-2022 or email bduran@newnhm.com. I'm honored to help our veterans.