VETERANS CAN NOW LIVE THE DREAM OF HOMEOWNERSHIP!

Active-duty service members and Veterans with discharges other than dishonorable, National Guard and Reserve service members and Veterans with an honorable discharge, certain eligible spouses, and other uniformed service personnel may be eligible for VA home loan guaranty benefits. The full listing is available online at: https://www.va.gov/housing-assistance/home-loans/eligibility/.

• No downpayment required 

(*Note: Lenders may require down payments for some borrowers using the VA home loan guaranty, but VA does not require a downpayment)

• Competitively low-interest rates
• Limited closing costs
• No need for Private Mortgage Insurance (PMI)
• The VA home loan is a lifetime benefit: you can use the guaranty multiple times

The VA Home Loan is often the best home loan product for Veterans. Some benefits include: 

• No down payment as long as the sales price is at or below the home’s appraised value (the value set for the home after an expert review of the property).
• No loan limit with full entitlement if you can afford the loan, VA will back loans in all areas of the country, regardless of home price.
• Competitive terms and interest rates from private banks, mortgage lenders, or credit unions 
• No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)
  • PMI is a type of insurance that protects the lender if the borrower ends up not being able to pay the mortgage. It’s usually required on conventional loans if the down payment is less than 20% of the total mortgage amount.
  • MIP is what the Federal Housing Administration (FHA) requires borrowers to pay to self-insure an FHA loan against future loss.
  • Not having to pay PMI could save a borrower on their monthly mortgage payment 
• Fewer closing costs, which may be paid by the seller, lender, or any other party
• No penalty fee for paying off the loan early

Yes, but the funding fee can be waived. To keep the program viable, Congress instituted a program funding fee, which is a percentage of the total loan amount. This user fee varies based whether the loan is a first-time or subsequent (second, third, etc.) use of the benefit. The funding fee may be paid in cash or included in the loan at closing. The funding fee can also be paid by the seller, lender, or any other party on your behalf.

• Veterans receiving VA compensation for a service-connected disability.
• Veterans entitled to receive VA compensation for a service-connected disability, but receive retirement pay or active service pay.
• Unremarried surviving spouses of Veterans who died in active service or from a service-connected disability.
• Service member with a proposed or memorandum rating from VA, prior to loan closing, as eligible to receive compensation as a result of a pre-discharge claim.
• Service member on active duty who provides, on or before the date of loan closing, evidence of having been awarded the Purple Heart.

You may be eligible for a VA-backed purchase loan if you meet all of these requirements.

All of these must be true:

• You qualify for a VA-backed home loan Certificate of Eligibility (COE), and
• You meet our—and your lender’s—standards for credit, income, and any other requirements, and
• You will live in the home you’re buying with the loan

A VA-backed purchase loan often offers:

• No down payment as long as the sales price isn’t higher than the home’s appraised value (the value set for the home after an expert reviews the property)
• Better terms and interest rates than other loans from private banks, mortgage companies, or credit unions (also called lenders)
• The ability to borrow up to the Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment. Learn about VA home loan limits
• No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)
  • PMI is a type of insurance that protects the lender if you end up not being able to pay your mortgage. It’s usually required on conventional loans if you make a down payment of less than 20% of the total mortgage amount.
  • MIP is what the Federal Housing Administration (FHA) requires you to pay to self-insure an FHA loan against future loss.
• Fewer closing costs, which may be paid by the seller
• No penalty fee if you pay the loan off early

• Buy a single-family home, up to 4 units
• Buy a condo in a VA-approved project
• Buy a home and improve it
• Buy a manufactured home or lot
• Build a new home
• Make changes or add new features (like solar power) to make your home more energy efficient

You can also:

• Get a VA-backed home loan to buy your first home
• Use your VA loan benefit again if you sell or refinance a home you bought with a VA-backed home loan
• Assume a VA-backed home loan (which means that instead of opening a new mortgage loan, the buyer takes over the seller’s loan)

You may need to pay the VA funding fee. This one-time fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. Your lender will also charge interest on the loan in addition to closing fees.

You may be eligible for an IRRRL if you meet all of these requirements.

All of these must be true:

• You already have a VA-backed home loan, and
• You’re using the IRRRL to refinance your existing VA-backed home loan, and
• You can certify that you currently live in or used to live in the home covered by the loan

Note: If you have a second mortgage on the home, the holder must agree to make your new VA-backed loan the first mortgage.

Often called a “streamline” refinance, an IRRRL may help you to:

• Lower your monthly mortgage payment by getting you a lower interest rate, or
• Make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate (an interest rate that changes over time) to one that’s fixed (the same interest rate over the life of the loan)

On a no-down-payment loan, you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment. Learn about VA home loan limits

You’ll want to keep closing costs in mind when refinancing a loan, as they can add up to thousands of dollars. Before you decide to refinance, divide your closing costs by how much you expect to save every month by refinancing to see if it’s worth it. While your lender can advise you on the costs and benefits of the transaction, you’ll want to be sure you understand what you’re getting into.