What Are VA Home Loans?
A VA home loan is a mortgage that is guaranteed by the U.S. Department of Veterans Affairs (VA). It is available to eligible veterans, active-duty service members, reservists, National Guard members, and surviving spouses of deceased veterans who have not remarried. The purpose of the loan program is to help veterans purchase homes without having to make a down payment or pay private mortgage insurance (PMI). The lender agrees to provide a loan at an interest rate that may be lower than the market rate. In addition, closing costs may be reduced or waived altogether if certain conditions are met.
The VA guarantees part of the loan against potential losses incurred by the lender in case you default on your payments. As such, lenders may offer more favorable terms than those given on conventional mortgages since they have less risk involved with approving your application for a VA loan.
Who Qualifies for a VA Home Loan?
In order to qualify for a VA home loan, applicants must meet certain criteria established by the Department of Veterans Affairs. These include having served at least 90 days during wartime (or 181 days during peacetime) in active duty; two years in the Selected Reserve or National Guard; or six years as an officer in any branch of service or combination thereof. Additionally, applicants must also demonstrate financial need and creditworthiness before being accepted into the program.
What Type of Home Can I Buy With a VA Loan?
The types of properties eligible under this program include single-family homes; townhomes; condominiums; manufactured homes; duplexes; triplexes; fourplexes; approved planned unit developments (PUDs); and other approved dwellings that meet certain standards set forth by the Department of Veterans Affairs (VA). There are some restrictions regarding these types of dwellings depending on location and size so it’s important to check with your lender prior to making any decisions about purchasing property with financing from this program.
Benefits of a VA Loan?
100% Financing & No Down Payment Loans
No Private Mortgage (PMI)
No Penalties for Prepaying the Loan
Competitive Interest Rates
Qualification is Easier than a Conventional Loan
Sellers Pay Some of the Closing Costs
Can be combined with additional down payment assistance to reduce closing costs
How do I apply for a Guaranteed VA Loan?
You can apply for a VA Loan with any mortgage lender that participates in the program. In addition to the application requirements from your lender, you will need the following at application time:
Certificate of Eligibility from the Veterans Administration by submitting a completed VA Form 26-1880.
Proof of Military Service from a VA Eligibility Center
VA home loans offer several advantages over conventional mortgages including lower interest rates and no down payment requirement—making them an attractive option for many home buyers who are eligible veterans or current military personnel. It’s important to note that there are some restrictions regarding which types of properties can be purchased with financing from this program so it’s best to check with your lender prior to making any decisions about purchasing property with a VA loan.
Vancouver and Portland trust U-Mortgage with their loan applications to get the best rate possible and have a great experience. We actively work with you to ensure that you are able to purchase the house that you desire.
Our local presence means that we are accessible and knowledgable about the SW Washington and Portland Metro area.
When you need a local mortgage company to be with you during the process, call us.
Competitive mortgage rates for borrowers in Vancouver, Portland, Camas, Battle Group, and all of SW Washington means that you get the best rate available. Want to know how we do it? Call Us.
Find the loan that's right for U.
Our team will help you find the right loan for you at the right time. We offer products and have an understanding of the market at all phases of the real estate cycle. We are committed to guiding your through selecting a loan and will help you reach your personal and financial goals with transparency and professionalism.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
Low Down Payment
Loans where the borrower is able to wrap many of the costs and closing costs into the loan, lowering the amount needed to close.