At NEXA Mortgage, it’s our top priority to serve clients with the resources they need to ensure they’re able to get the home that they want. Fueled by years of industry knowledge combined with sophisticated expertise, we pride ourselves on acting as a leading resource for clients looking to explore which loan option best suits their needs.
VA Home Loans
VA Home Loans are government insured programs offered as a token of appreciation, exclusively to the brave individuals who have fought for our country. Qualifying candidates include:
• Active duty military and personnel • Eligible Veterans • Surviving spouses that meet necessary requirements
These loan programs are highly favorable as they require zero money down, aren’t attached to a mortgage insurance payment and are backed by the government which often guarantees lower rates.
Before applying for a VA Home Loan
When you begin exploring a VA home loan program, you must be sure to get a VA Certificate of Eligibility. If you’re without this document, then you won’t be able to secure the specialty loan.
How do I get my certificate?
You have the choice to apply either through your lender or online using your eBenefits portal. Be aware that when applying, your military status influences the information you submit.
To learn what information you’ll need to apply, visit va.gov/housing-assistance
Who Best Qualifies for a VA Home Loan
Home buyers who qualify for a VA Home Loan must be active duty military, a veteran or a surviving spouse. There are eligibility requirements that can affect whether or not you qualify to be approved for a VA home loan.
Qualifying candidates must have served:
• A minimum of 6 years in the Reserves or National Guard • A minimum of 2 years for all regular service personnel • A minimum of 181 days during peacetime • 90 consecutive days during conflict
Not sure if you meet the requirements? Let’s schedule a time to further explore how you may qualify for a VA Home Loan. We’d welcome the opportunity to also take that time to thank you for your service.
Credit Score
VA home loans are interesting as there’s no designated credit score required for approval. Rather, home buyers will be assessed by the lender. Keep in mind that each lender has an internal FICO standard that they weight decisions off of.
Debt-to-Income Ratio (DTI)
Unlike other loan programs, the VA doesn’t assign a cap to the debt-to-income ratio. However, any applicant with a ratio that exceeds 41% will be subject to further review. This is standard precautionary measure taken to determine whether or not they pose the risk of not being able to successfully fulfill the loan payments.
What other factors are considered when applying for a VA Home Loan?
There are a variety of factors that determine your eligibility for a VA loan. These include but are not limited to length of duty, relationship to active-duty member and veteran status.
We’d love to schedule a time to further discuss your eligibility to explore what program is best for you.
Costs Associated with a VA Home Loan
The best part about a VA loan is that no down payment is required. This is great news if you don’t have the available savings to put towards your new home.
Keep in mind, however, that the more money the loan is for, the more you’ll pay in interest throughout the duration of the loan. Putting money towards a down deposit can help to alleviate any extra costs you’ll accrue over time.
What is the interest rate?
Since VA loans are partially insured by the VA, you can more than likely get approved for interest rates far below industry standard.
Do I have to pay for mortgage insurance?
Another great benefit of a VA home loan is that there is no required mortgage insurance.
Are there any other costs or fees?
While VA loans are free of any mortgage insurance or down payments, they do require you pay a funding fee. This can be paid upfront or rolled into your monthly payments. The fee typically ranges anywhere from 1.4% to 3.6% and is charged against the total value of the loan.
We’re excited to announce that as of 2020, any active-duty military personnel who has been the recipient of a Purple Heart does not need to pay a funding fee. Other qualifying home buyers exempt from this fee include veterans enrolled in the VA disability compensation program as well as surviving spouses who meet necessary requirements.
Appraisal Requirements
Just like an FHA home loan, VA programs are backed by the government so they’re going to exercise guidelines that are just as strict. With an emphasis on health and safety, properties must meet the requirements deemed necessary by the VA.
Is a VA Home Loan for You?
For qualifying home buyers, a VA home loan can be a great option. Whether you’re interested in applying for one, or simply want to learn more, we’re here to provide you with the information, so that you can get the home you want.
Contact us to talk with one of our dedicated agents who’s ready to help you take the first step to making your dream a reality