Where Do You Turn When It Comes to Mortgage and Home Buying Decisions?
October 2, 2018
USDA Loans Defined
October 9, 2018

VA Loans Defined

A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA).  The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction.

The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program. The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment.  VA loan guidelines are currently as follows:

CREDIT SCORE

MINIMUM 620

MAXIMUM LOAN AMOUNT

$453,100.00

100% FINANCING TO QUALIFIED VETERANS

TERMS

15, 25, OR 30 YEARS

INCOME/DEBT RATIO

29% HOUSING / 41% TOTAL DEBT

(or higher with Underwriting approval)

SELLER CONTRIBUTIONS

UP TO 6% OF SALES PRICE

  • VA Funding Fee may be waived for Veterans who are at least 10% disabled.
  • VA Funding Fee is 2.15% for first time use and 3.3% for subsequent use (reservist 2.40% first time use).
  • Wood infestation Report is required on VA Loans.
  • Jumbo VA loans are available.