Thank you for your service!
VA loans are often the best option available for those who have served. Usually no down payment is required, and there is never a monthly mortgage insurance premium regardless of down payment.
No Down Payment Required (in many cases)
For VA loans at or under the local conforming limit ($453,100 for most of the country), a down payment is generally not required. No maximum loan amount, but VA requires you to supply 25% of the difference between the loan amount and the local conforming loan limit.
No Monthly Private Mortgage Insurance (PMI)
VA collects a Funding Fee (unless you are exempt due to disability) of 1.25%- 3.3% at the beginning of the loan (can be financed), but there is no monthly mortgage insurance added to your payment.
Flexible on Credit
While VA requires an acceptable credit record, they have flexibility on credit scores and debt-to-income ratios.
Sellers can assist with up to 4% of closing costs.
Borrowers can refinance their homes with a VA streamline or cash-out loan. Streamline refi on an existing VA loan doesn't require a credit check or appraisal. The cash-out option involves a credit check and appraisal since the home’s value represents the maximum loan amount and the new loan will be larger than the existing loan.
New construction loans and increases to purchase loans for certain renovation projects are allowed by VA. VA's Energy Efficiency Improvement program can add up to $6,000 to your home loan for energy-efficient improvements like solar heating, insulation, thermal windows and doors.
VA Funding Fee (exemptions apply)
Requires VA Certificate of Eligibility
Original entitlement may need to be satisfied before new entitlement
On purchases the subject property must be primary residence