Q: What are the benefits of a VA home loan?
A: There are many benefits of a VA Home loan:
- No down payment
- Low interest rate.
- Closing costs are comparable with other financing types (and may be lower).
- No mortgage insurance premiums (NO monthly PMI or MIP payments).
- An assumable mortgage.
- Right to prepay without penalty.
- NO JUNK FEES
Q: What is the minimum credit score required to get a VA loan?
A: While there are not set credit score requirements, a veteran with a credit score of at least 620 and higher, should be able to obtain a VA Loan. Veterans with higher scores can expect to get the better terms on their loans. Also, if a veteran is asking for an exception to a credit or other requirement (an isolated late payment, high debt ratios, just out of bankruptcy) the higher the credit score, the more likely the exception will be granted. For more information on VA loan credit requirements Click Here
Q: Can I get a VA loan if I have filed bankruptcy?
A: You may still qualify for a VA loan, but the following rules apply:
- If you filed a Chapter 7 bankruptcy, then must be 2 years from the date of discharge. Preferably, no late payments since the bankruptcy. It is also required that the veteran demonstrate credit worthiness by having a few new lines of credit, such as credit card and/or car loan with acceptable payment history.
- If you filed a Chapter 13 (this type of bankruptcy requires monthly payments), then you must wait until you are discharged from the Chapter 13 bankruptcy. It is also required that the veteran reestablished credit, such as a credit card or car loan.
Q: Does VA do construction loans?
A: VA does not do VA loans. However, our affiliated VA Home Loan REALTORS, do have a list of local builders who will get the construction loan in their name, build the veterans desired home, then when complete, sell it to the veteran, allowing VA 100% financing to be used by the veteran. This allows the veteran to purchase a custom built house, while financing it using his/her VA entitlements. For more information on construction/builder loan Click Here
Q: I want to buy a house with a VA loan. Do I need to occupy the property?
A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the loan is closed or within a reasonable time afterward. VA loans are not allowed on investment property.
Q: I have already obtained one VA loan. Can I get another one?
A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. For more information on VA Certificate of Eligibility, Click Here
Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?
A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full. However, you may use the partial remaining eligibility for a potential purchase. For more information on residual eligibility, Click here
Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required. For assistance in calculating how much residual eligibility you may have left, please Click Here
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. The children of a veteran who died on active duty or as the result of a service connected death are NOT eligible for the home loan benefit.
Q: How do I get the VA Loan process started?
A: Getting the VA Loan process started is easy. Simply click here to apply online. A VA Loan specialist will review your online application and contact you immediately to discuss your unique situation and how much of a VA Loan you will qualify for. Once you have the commitment of the VA Loan Center on your VA loan, you can start shopping for that new home with confidence. We even have affiliated VA Home Loan REALTORS, who are experts when working with VA home buyers. For an expert VA Home buyer real estate agent (NO FEE) Click Here
Q: I am not sure I feel comfortable applying online, is our application secure?
A: The online application, question forum, and live chat, are highly encrypted for your protection. All veteran information is treated with the highest security safeguards. If however, you wish to call to discuss your situation, before submitting your personal information online, you may do by contacting us via our live chat. I VA loan specialist will assist you with any questions and concerns you may have.
