• No Down Payment: VA loans typically do not require a down payment.
• Competitive Interest Rates: VA loans generally offer lower interest rates compared to conventional loans.
• VA Funding Fee: A one-time fee (can be rolled into the loan) is required, but it is often waived for veterans with disabilities.

Eligible Property Types:

• Single-Family Homes: Most commonly purchased with VA loans.
• Townhomes and Condominiums: Eligible if they are VA-approved.
• Multi-Family Homes: Properties with up to 4 units, as long as the borrower lives in one unit.
• New Construction: Must meet VA requirements.

Who is Eligible for a VA Loan?

• Veterans and Active-Duty Service Members: Including those who served in wartime or peacetime.
• National Guard & Reserves: Eligible after six years of service.
• Surviving Spouses: Unmarried surviving spouses of service members who died in service or from a service-related disability may qualify.

Most Common Types of VA Loans:

• Purchase Loan: For buying a home or building a new one.
• Refinance Loan (IRRRL): For refinancing an existing VA loan to a lower interest rate.
• Cash-Out Refinance: Allows access to home equity for various purposes.

Benefits of a VA Loan:

• No Down Payment: Most borrowers qualify for a loan without needing to save for a down payment.
• Lower Interest Rates: VA loans offer competitive rates.
• No PMI: Unlike conventional loans, VA loans do not require private mortgage insurance (PMI).
• Flexible Credit Requirements: Easier to qualify with lower credit scores.

Common Misconceptions:

• VA Loans are Only for First-Time Homebuyers: Veterans can use a VA loan multiple times.
• VA Loans Have Stringent Requirements: VA loans have more flexible qualifications compared to conventional loans.
• VA Loans Take Longer to Close: VA loans can close in the same time frame as conventional loans.

Required Documentation for VA Loan Qualification:

• Certificate of Eligibility (COE): Verify military service and eligibility.
• Proof of Service: For active-duty military or veterans.
• Income Documentation: Recent pay stubs, tax returns, and W-2s.
• Credit History: VA loans may allow for lower credit scores, but a credit report is still required.
• Assets and Bank Statements: Verification of funds for closing costs and reserves.

To learn more about VA loans or to determine if you qualify, contact Steven Batista at Legacy Mortgage Group Inc. who is your experienced loan officer today.

If you’re ready to take the first step toward homeownership then complete a loan application by clicking Apply Now.  

For more details, visit VA Home Loans.