We want you to be informed and comfortable with the type of loan you choose. Below we have provided information on conventional loans and what we offer. When you are ready, our experienced team can help you decide which type is the right fit for you.

 

What is a VA Mortgage Loan?

A VA loan is issued by a private lender and insured by the Department of Veterans Affairs. It’s a valuable benefit — offering a mortgage with a lower-than-most interest rate that usually requires no down payment — for qualified U.S. veterans, active-duty military personnel and certain surviving spouses.

 

 

Who Qualifies for a VA Mortgage Loan?

 

You are likely to be entitled to apply for a VA mortgage if:

• You are active-duty military
• You were separated from military service in a situation “other than dishonorable discharge”
• As a veteran or active military, you meet specific length-of-service requirements
• You are a reservist or a member of the National Guard
• You are a qualified surviving spouse of a deceased veteran

In addition, there are these requirements:

• The home must be your primary residence
• You must have a valid certificate of eligibility from the VA
• Although the VA has no minimum credit score requirement, most lenders do

 

Types of VA Mortgage Loans:

Home purchase: A VA loan can be used to buy an existing home or a condominium in a VA-approved development, or to build a home.

Cash-out refinance: A VA cash-out refi replaces your mortgage with a new loan, while tapping some of your home’s value for things like paying off debt or making home improvements. It also can be used to replace a non-VA loan with a VA loan.

Interest rate reduction refinance loan: A VA IRRRL (which is pronounced “Earl”) is also called a streamline refinance loan. You can replace an existing VA loan with a mortgage offering a lower interest rate, or move from an adjustable-rate loan to one with a fixed interest rate.

Native American Direct Loan program: This helps qualified Native American veterans buy, build, improve or refinance a home located on federal trust land.

Adapted housing grants: These help veterans with service-related disabilities purchase, build or modify homes for better livability.

VA Mortgage Loan Fees

Although mortgage insurance isn’t charged on VA loans, a “funding fee” serves the same purpose: to help lenders defray the expenses of foreclosing on borrowers who default. The fee ranges from 1.25% to 3.3% of the loan balance, depending on your down payment, branch of the military and whether or not it’s your first time getting a VA loan.

The VA funding fee can be rolled into your total loan package, but that will likely raise your interest rate and will absolutely raise your monthly payment.

Though a down payment is not generally required, putting 5% or more down will reduce your VA funding fee. And a down payment will lower your monthly payment, too.