Learn About VA Loans

When it comes to buying a home, there are many options available to you. One option that is often overlooked is a VA loan. VA loans are specifically designed to help veterans and active-duty service members achieve the dream of home ownership. If you're considering using a VA loan to purchase a home, we have provided some of our most asked questions below.

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What is a VA Loan?

A VA loan is a mortgage loan that is guaranteed by the Department of Veterans Affairs (VA). This means that if you default on the loan, the VA will cover a portion of the lender's losses. Due to this guarantee, VA loans have more flexible credit standards and require no down payment, making them an attractive option for many home buyers that qualify.

Who is eligible for a VA Loan?

VA loans are available to a variety of service members including veterans, active-duty personnel, reservists, and members of the National Guard. To be eligible for a VA loan, you must have served at least 90 days of active duty during wartime or 181 days of active duty during peacetime. If you are a spouse of a service member who died in the line of duty or because of a service-related disability, you may also be eligible for a VA loan.

What are the benefits of a VA Loan?

  • No down payment required

  • No mortgage insurance (MI)

  • No appraisal needed on certain refinance loans

  • Closing costs limited and may be paid by the seller

  • No penalty fee if you pay off the loan early

  • Assistance available if you have trouble making payments

  • Surviving spouses may be eligible

What if I've used a VA Loan Before?

If you have used a VA Loan before, you are eligible to use it again. This is because the VA does not have a limit on the number of times you can use this benefit. You can use it multiple times to purchase different properties if you meet certain eligibility criteria. The VA has specific rules and regulations that govern their loan programs. One of the essential requirements that you must meet is that you must have paid off your first VA Loan before you can apply for a second one. The VA also requires that you have enough financial stability to cover the proposed loan amount.

Eligible properties are:

  • Single family residences

  • 2-4 unit properties

  • VA-approved condos

  • Manufactured housing

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How Do I Apply for a VA Mortgage Loan?

  • Contact a loan originator

  • Confirm you meet VA home loan requirements

  • Obtain a valid Certificate of Eligibility (COE)

  • Apply for loan pre-approval

  • Gather supporting documents

  • Find a home with your real estate agent

  • Complete your loan application and begin closing steps

VA loans are an excellent option for veterans and active-duty service members who are looking to purchase a home. If you're interested in using a VA loan to purchase a home, contact Freestone Mortgage today to learn more about your options.