At Edge Mortgage Inc. we love and support our wonderful veterans and military families. If you’re exploring home-buying options, you might have come across VA loans and wondered if they could be right for you. VA loans offer some fantastic benefits, and today, we are going to break down what you need to know about eligibility and the perks that come with these loans. We know that going through the home loan process can feel confusing and overwhelming at times. While we strive to make it as quick and easy of a process as possible, we also think it’s helpful for you to be informed. Knowing the steps and what to expect is a huge part of helping you feel at ease. We set a high standard for the mortgage industry and we believe our veterans should take full advantage of VA their VA home loan benefits.
What is a VA Loan?
A VA loan is a type of mortgage loan backed by the Department of Veterans Affairs. These loans are designed to help veterans, active-duty service members, and eligible surviving spouses become homeowners. The VA loan program has been around since 1944 and has made homeownership more accessible for millions of veterans and their families.
Eligibility requirements for VA Loans
Service requirements
To be eligible for a VA loan, you need to meet certain service requirements. Here’s a quick rundown:
- Active Duty and Veterans: Generally, you need to have served 90 consecutive days during wartime or 181 days during peacetime.
- National Guard and Reserve Members: Typically, you need to have at least six years of service.
- Surviving Spouses: You may be eligible if you are the surviving spouse of a service member who died in the line of duty or from a service-related disability.
Certificate of Eligibility (COE)
To prove you’re eligible, you’ll need a Certificate of Eligibility (COE). Getting a COE is pretty straightforward:
- Apply Online: You can apply through the VA’s eBenefits portal.
- Through a Lender: Many lenders like us can help you get your COE as part of the loan process.
- By Mail: You can fill out a form and send it to the VA.
Additional eligibility factors
Other factors can also affect your eligibility, such as the length of your service and your discharge status. It’s a good idea to check with the VA or a VA-approved lender to confirm your eligibility.
Benefits of VA Loans
No down payment
One of the biggest benefits of a VA loan is that you don’t need a down payment. This makes it easier to buy a home without having to save up a large sum of money upfront.
Competitive interest rates
VA loans often come with lower interest rates compared to conventional loans. This can save you a significant amount of money over the life of your loan.
No Private Mortgage Insurance (PMI)
With a VA loan, you don’t have to pay for private mortgage insurance, which is typically required for loans with less than a 20% down payment. This can lower your monthly payments.
Flexible credit requirements
VA loans are known for having more lenient credit requirements. This means you can still qualify for a VA loan even if your credit score isn’t perfect.
Closing cost limits
The VA limits the amount you can be charged for closing costs, which can help reduce the amount of cash you need to bring to the table.
Assumable Loans
VA loans are assumable, meaning if you sell your home, the buyer can take over your loan. This can be a great selling point if interest rates have risen since you bought your home.
Applying for a VA Loan
Pre-approval process
Getting pre-approved for a VA loan is a smart first step. It gives you an idea of how much you can borrow and shows sellers you’re serious. To get pre-approved, you’ll need to provide some financial information to your lender.
Choosing a VA-approved lender
Not all lenders offer VA loans, so it’s important to find one that’s VA-approved. Look for a mortgage broker like Edge Mortgage Inc. with experience in VA loans to ensure they can guide you through the process smoothly.
Documentation and paperwork
You’ll need to gather some documents for your loan application, including proof of income, tax returns, and your COE. Having these ready can speed up the process.
Loan approval and closing
Once your application is submitted, the lender will review your information and decide on your loan. After approval, you’ll move to closing, where you’ll sign the final paperwork and get the keys to your new home!
Frequently asked questions about VA Loans
Common questions
- Can I use a VA loan more than once? Yes, you can use a VA loan multiple times as long as you pay off the previous loan or have remaining entitlement.
- Can I buy a second home with a VA loan? VA loans are intended for primary residences, but in some cases, you can use a VA loan to buy a second home.
Myths and misconceptions
There are a few myths about VA loans that aren’t true, such as needing perfect credit or a down payment. The VA loan program is designed to make homeownership easier, even if you don’t have a high credit score or a large down payment.
Edge Mortgage Inc. is your trusted mortgage broker for VA loans
VA loans offer incredible benefits for veterans and military families, making homeownership more accessible and affordable. If you think a VA loan might be right for you, don’t hesitate to reach out. My team and I are here to help you navigate the process and find the best financing option for your dream home.Ready to explore your options with a VA loan? Contact us today for personalized advice and assistance. We’re here to help you every step of the way in your home-buying journey!
Check out some of our 5-star reviews from happy clients
“Working with Keri to obtain a new mortgage was wonderful! Great communication, thorough explanations, and a willingness to do whatever it took to make the process seamless was our experience from start to finish. I would absolutely use Edge Mortgage again and highly recommend them without hesitation. -Michael
“Keri was a pleasure to work with from beginning to end, and always had our best interests at heart when comparing different mortgage options. 100% recommend her services to everyone we know.” -Kyle
“It was a great experience working with Keri and Kirstie! They are amazing and were constantly in communication through the entire process! Definitely recommend them, very professional and knowledgeable!” -Vanessa
Finally, do you need more answers to your questions about VA loans? Call Edge Mortgage Inc. today!
Edge Mortgage Inc. is located in Johnstown, Colorado, and serves all of Ohio, Colorado, Wyoming, and Nebraska. We offer honest answers and a stress-free process and we have no hidden or extra fees, keeping more money in your pocket. We are your trusted mortgage broker and we are ready to serve you. Call us today at 970-744-0000.
You may also be interested in Navigating Rural Financing: A Homebuyer’s Guide to USDA Loans
