A VA Mortgage Loan is a loan made by an approved VA lender and guaranteed by the Veteran's Administration. The VA does not lend money but guarantees a percentage of the loan amount in case of borrower default.
To qualify for this loan program, the borrower must be either active, non-active or retired military, Reserve or National Guard or the surviving spouse of a qualified veteran or service person. The borrower must obtain a Certificate of Eligibility from the Department of Veterans Affairs.
The underwriting criteria for VA-guaranteed loans are less strict than those of a Conventional loan. The credit requirements are more lenient, there is no down payment required, and gifts may be used toward closing costs or down payment. VA loan limits are made by geographic location. An upfront funding fee is required with VA-guaranteed loans. This funding fee may be financed into the loan. There is however no monthly mortgage insurance premium required as part of a VA loan.
A VA loan may be used to purchase or refinance a 1-4 family home, a Condominium or a Planned Unit Development (PUD) but the property must be owner occupied.
To get more information about VA loans or to see if you are qualified, call us today at 888-933-8639