VA Loans
VA loans are the #1 Loan for military families to buy homes. The Department of Veteran Affairs does not loan money! They provide the guidelines lenders must follow and they also provide the lender a guarantee so you’re not required to pay for mortgage insurance.
VA Certificate
The Department of Veteran Affairs does not provide an
online VA certificate request. Most lenders will require you to apply for it and this could take up to 6 weeks by mail. However, you can request your VA Certificate securely online at
www.VA-Certificate.com. One of our licensed mortgage professional s will get your certificate for you.
VA Funding fee
The
VA funding fee is a fee collected by your lender but paid to the Department of Veteran affairs. It covers the cost of administering the VA loan program. The fee is based on the sales price and the following:
First time use of the VA loan benefit
| |
Active duty/Retired |
Guard/Reserve |
| 0 down payment |
2.15% |
2.40% |
| 5-10% down payment |
1.50% |
1.75% |
| 10% or more down payment |
1.25% |
1.50% |
Subsequent use of the VA loan benefit
| |
Active duty/Retired |
Guard/Reserve |
| 0 down payment |
3.30% |
3.30% |
| 5-10% down payment |
1.50% |
1.75% |
| 10% or more down payment |
1.25% |
1.50% |
Exemptions: If you are retired and are rated by the VA with a disability you are exempt from the VA funding fee.
Credit Requirements
The Department of Veteran Affairs and most lenders require that you have a minimum credit score of 620, no bankruptcies within the last 24 months and no recent collections.
Income Requirements
You must be employed and able to make your monthly payments. If you are on active duty and will be retiring or separating within 12 months, you must provide proof that you will be employed after your military service. For active duty your base pay, basic allowance for housing, and basic allowance for substance all count as income. If you receive special pays, these cannot be counted unless they are permanent and will not go away.
Basic Allowance for Housing
Active duty military can find their
BAH rates from
www.BAH-Rates.com. This simple and easy to use calculator will determine your housing allowance based on your rank and duty assignment.
Debt Consideration
There are no specific guidelines concerning debts. As a general rule you should not have more than 45% debt to income ratio, but many other factors are considered. If you have excellent credit and or a substantial amount of money in savings or checking, you may qualify with higher debt ratios.
Getting Pre Approved
Getting
Pre approved for a VA loan is a very important part of the home buying process. You should get pre approved before you start shopping so that you and your agent know how much you qualify for. It only takes a few minutes for a
VA Loan specialist to review your credit, income and debts to make this determination.
For more VA loan information, visit www.va-loans.com