25 Aug VA Loan for Service Members and Reservists
Veteran loans are mortgage facilities provided by the US Department of Veterans Affairs (VA) to help Veterans on the verge of homelessness purchase the house of their dreams. With benefits like no downpayment requirement, lower interest rates and no PMI requirements, the VA loan program has helped thousands of Veterans transition smoothly into the civilian lifestyle.
IS THERE AN ELIGIBILITY CRITERIA?
To establish your eligibility for a VA loan, you must pass certain eligibility criteria to get the Certificate of Eligibility (COE).
Any ONE of the following conditions must be true to qualify for a COE-
- You are a current/former military member who has served at least a specific amount of time on duty.
- You are a reservist or national guard with at least six years of experience.
- You are a family member of a Veteran who either went missing in action, was a prisoner of war or died in the line of action/from a service-related disability/injury.
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WHAT ARE THE BENEFITS?
Apart from the no downpayment requirements and lower interest rates, a VA loan comes with enormous benefits like-
- No Downpayment Requirement- The loans are true $0 down mortgage facility that helps Veterans purchase a new home without worrying about the downpayment.
- No PMI Requirements- Private Mortgage Insurance is required by most conventional homes if you are choosing the no downpayment option. However, with a VA loan, you don’t have to save any additional bucks to pay the PMI.
- Lower Interest Rates- Compared to conventional loans, VA mortgages come with the lowest interest rates possible. This can reduce your monthly downpayment, which can account for some major savings.
- Low Closing Fees- A VA loan comes with exceptionally low closing fees.
- Flexible Guidelines- VA mortgages come with flexible guidelines and easy eligibility criteria. The guidelines required by the department to establish your eligibility for the loan are pretty lenient. Moreover, it does not require an outstanding credit score or a good credit history to qualify for this benefit.
APPLYING FOR A VA LOAN
Applying for a VA loan is pretty simple, especially if you are applying through an online portal. You can start with getting pre-qualified and attaining your COE.
Although pre-qualifying is not mandatory, it is highly recommended as it gives you an estimate of how much loan amount you can qualify for. This can give you an estimate of your budget, which can help you look for homes under the budget.
Because it validates your eligibility to the private lenders, the Certificate of Eligibility (COE) is the most important document while applying for a VA loan and getting your quote.