Couple purchases their first home
What is a VA Loan?
A VA loan is guaranteed by the U.S. Department of Veterans Affairs. The loan itself isn’t actually made by the government, but the fact that it’s backed by a government agency makes lenders feel more comfortable offering these loans. This type of loan takes on less risk than a conventional mortgage. As a result, it is possible that you may get a VA loan without a down payment and in some circumstances looser credit standards. You will still need to meet certain requirements and the lender still needs to approve you.
If you qualify for a VA loan, it can help you attain homeownership with less money than you’d need in the bank otherwise.
How do VA Loans work?
You will fill out paperwork from the VA that verifies your eligibility for the program. You also receive what’s known as your entitlement, which is the dollar amount guaranteed on each VA loan. Lenders may be willing to loan up to four times the amount of your entitlement.
With all of this in place, it is definitely possible to get a VA loan with no money down. VA loans do not require private mortgage insurance (PMI), but you will pay a VA funding fee when you close. This will be a percentage of the loan’s total value. That fee helps keep the program running for future borrowers.
What are VA loan eligibility requirements?
First, you need to make sure you’re eligible for a VA loan. The government has service requirements for veterans or those on active duty. They also offer opportunities for certain military spouses to qualify for VA loans. You can get more information from the government’s website, but these are the basic requirements:
- You’re currently on active military duty, or you’re a veteran who was honorably discharged and met the minimum service requirements.
- You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime.
- Or, you served for more than six years in the National Guard or Selective Reserve.
If your spouse died in the line of duty, you may qualify for a VA loan.
In order to apply, you need to obtain a VA Certificate of Eligibility, or COE. Without this certificate, you won’t be able to get your loan.
It is exciting to share how this Navy Pilot purchases first home using VA loan benefits. Heroes San Diego is in place to help our Heroes, and give back. We offer our services FREE of charge. If you have questions or concerns, are interested in purchasing a home… or not sure where to start-Heroes San Diego is right for you!
A word from the happy couple: “We Recommend every Hero to sign up for the Free VA workshop. You learn so much and they teach you how to buy a home.” Thank you HSD!”