Purchasing a home for military service members can present hurdles and challenges. By providing a zero percent down payment option, active duty, surviving spouses, veterans and more can alleviate this hassle by taking advantage of a VA loan option. This program was designed in 1944 to help veterans get into a home or refinance their current home without the additional costs and without needing to put large sums of money down up front.

Backed by the Department of Veteran Affairs, the VA loan provides certain guarantees which assists in allowing lenders to bypass certain very strict requirements that would otherwise be needed for loan approval. With no money required to be put down and less than strict guidelines, what are some of the other benefits provided by a VA fixed loan program?

• No (PMI) Private Mortgage Insurance - this can save you up to 1% per year until you reach at least 20% equity

• Competitive & typically low rates - this is due to the fact that the risk for lenders is comparatively low

• Limited closing costs

• 100% loan to equity value

• Lenient lending policies when compared to most conventional loans

• Additional exemptions available to disabled veterans

• Funding fee can be waived, if qualified or paid by the seller on your behalf

• No penalty fee for early payoff

• Most fees can be rolled into your home loan

When it comes to VA loans there are many options available for the homebuyer or home refinacer’s needs. The most typical type found would be the standard VA purchase loan.  This is for qualified purchasers in general for their home loan. Another VA loan typically found is the VA cash out refinance loan. This VA loan is mostly used for replacing a current VA loan or converting a standard conventional mortgage loan into a qualified VA loan. This loan allows the purchaser to turn their home equity built up into cash. The VA Rehab and Renovation loan is another available option to consider. This can be used for home renovations, home repairs or certain home improvements.

What are some of the qualifications to apply for a VA loan? Active duty service members who have served over 90 days may qualify for this loan if they are currently serving. Veterans may also qualify for this program unless they have been dishonorably discharged. National Guard and Reserves also can apply for a VA loan if they are active duty and fit the standard VA criteria when applying. Even spouses may apply if they are: an unmarried surviving spouse of a veteran who died during his or her service, unmarried surviving spouse of a disabled veteran, or a spouse of a living service member who is missing in action (MIA) or a prisoner of war (POW). Even U.S. citizens who serve in the armed forces of a government allied with the United States during WWII may qualify.

If you fit these criteria or have questions about how you can get started with a VA mortgage loan, then please contact our qualified loan officers at Firehouse Mortgage. Let us get you into the home you deserve!