How do VA home loans work?
A VA home loan is a mortgage loan that’s issued by private lenders and partially backed by the federal government. It helps U.S. veterans, active duty service members, and select widowed military spouses to buy a home.
VA home loans have been around since 1944, but they’ve become increasingly popular in recent years and now account for about 8%* of home purchases. This type of loan is often a good option because requirements are less restrictive to qualify for and require little to no down payment.
VA home loans can be a great way into homeownership. They differ in some key ways from traditional home loans, so contact us to find out if a VA home loan is the best way for you to buy that dream home.
Key Features and Benefits of VA Home Loans:
• Little or no-down-payment
• Minimum credit of 620 is required for fixed-rate financing.
• Borrowers with credit scores from 580 to 619 are subject to stricter guidelines.**
• Adjustable-rate mortgages (ARMs) require a minimum 620 credit score.
• High-balance loans are allowed. If you're buying a home in a high-cost area, you may qualify for up to $2.5 million in loan funds.
• A variety of property types are allowed, including single-family residences, 2-4-unit properties, VA - approved condominiums, manufactured homes, and properties in Planned Unit Developments (PUDs).
• Loans are for primary residences only and can’t be used for investment properties.
We are proud to support veterans and military homebuyers.
* Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development, New Residential Construction, https://www.census.gov/construction/nrs/pdf/quarterly_sales.pdf
**Borrowers with credit scores from 580 to 619 may only qualify for purchase transactions of one-unit single-family residences. Gift funds and down payment assistance are not allowed. Other restrictions may apply.