The Lifetime Advantages of the VA Loan Program
A VA Guaranteed Home Loan has many advantages over a convention loan. The VA loan program provides Veterans, active duty personnel, and reservists with a benefit that can be used throughout your lifetime.
- No down payment required for loans up to specific county loan limits
- Find information related to your county here:
- No maximum loan amount
- No mortgage insurance
- No lender fees or points required
- Refinance to a lower interest rate with an Interest Rate Reduction Refinancing Loan (IRRRL), requiring no appraisal or income verification in most cases
The following are frequently asked questions about the VA loan program:
1. I used my VA loan benefit already; can I use this benefit again? Yes. You may continue to use your VA loan benefit as many times as you wish. If you own a home that is currently financed with a VA guaranteed loan, you may purchase a new primary residence using a VA home loan as long as you have enough remaining VA eligibility. A down payment may be required. You can re-use your VA eligibility as many times as you wish for future home purchases or refinances.
2. How much documentation is required to obtain a VA Guaranteed home loan? A VA Guaranteed home loan may require additional documentation compared to other conventional mortgages. One important document is your Certificate of Eligibility (COE). This document verifies you are eligible for a guaranteed VA home loan and a VA direct lender can obtain the COE for you.
3. How long will it take to be approved and close on a VA Guaranteed home loan? VA loans take no longer to close than a conventional loan. In most cases, you can close within 45 days. An IRRRL can be closed in as little as 30 days.
4. How much money do I need for my down payment to purchase a home using my VA loan eligibility? With your VA home loan, you may purchase a home with no money down with a purchase price up to your specific county limit. You can find more information on specific VA loan county limits here or by contacting a VA direct lender.
5. What is the maximum loan amount I can borrow using my VA loan eligibility? There is no VA loan limit. However, depending on the purchase price or balance of the loan you wish to refinance, you may be required to make a down payment or in the case of a refinance, you may be required to have additional equity. Contact a VA direct lender for further details.
6. I have no equity in my home. Can I refinance with a VA loan even if I have no equity? In many cases eligible borrowers will qualify for a VA refinance with little or no equity in their home. For instance and Interest Rate Reduction Refinancing Loan (IRRRL). Contact a VA direct lender for further details.
7. Is mortgage insurance required if I have less than 20% equity in my home? No, a VA loan is guaranteed by the US government. This is the “benefit” part of your VA Loan. You are able to purchase a home with no equity and pay no monthly mortgage insurance premiums.
8. I no longer live in the home I financed with my VA home loan. Can you get a streamlined refinance (IRRRL) even if I no longer occupy the home? Yes, it is possible to get an IRRRL on a non-owner occupied home.
9. I have no cash and I wish to refinance my VA Guaranteed home loan to a lower interest rate. How can I afford to refinance? You may either finance the cost of the refinance into your loan amount, or the lender may pay your closing costs. You are not required to have cash in the transaction to qualify for an Interest Rate Reduction Refinancing Loan.
10. I am currently working with another lender to obtain a VA home loan. I am not happy with the service and I wish to change lenders. Is my VA real estate appraisal transferrable to another lender? Yes. The VA requires your lender to release the appraisal to another lender upon your request.
11. Are origination fees required to obtain a VA guaranteed home loan? Absolutely not! Shop the Internet for a lender that charges no lender or origination fees.
The NO DOWN PAYMENT feature of the VA Guaranteed loan program can help you realize your dream of home ownership sooner. However, even if you are buying your fifth home, the future advantages of being able to refinance your home with little or no out of pocket cost and no mortgage insurance can provide substantial future savings. The benefits of a VA Home Loan go beyond the initial purchase of your first home.
Contact a VA direct lender to learn more about your eligibility for a government backed VA home loan.