VA loans are 0% down home loans available only to Veterans, Service Members, and select military spouses. They have no PMI (Private Mortgage Insurance) since they are backed by the Federal Government. VA purchase loans allow Veterans to buy single-family homes, approved condominiums, multi unit properties (one to four units), and new construction. VA loans can’t be used to purchase investment properties. VA loans have very competitive interest rates compared to conventional lending. They allow borrowers to pay off their home loans at any point without having to worry about a prepayment penalty. Veterans who qualify for a VA loan can use this program over and over again, and the benefit never expires. If you are active duty, prior military, or a surviving spouse this is the loan for you! No money down, low rates, no PMI! Not sure if you are eligible? Just give us a call and we can tell you how much eligibility you have to use!
Here are a few program requirements:
- Certificate of Eligibility from the VA (our loan originators will order this for you)
- Minimum of 620 Credit Score, See below for lower credit scores
- You must be able to pay any closing costs not being paid by the seller from an acceptable source (or contact us about lender credits)
- You must meet general debt ratio requirements of 30/55. On average, most loans can be approved with housing ratios of 30% and total debt ratios of 55%. We do see higher (or lower) ratios depending on specific situations.
- When scores are under 620 those ratios drop to 29/41 – typically most buyers with scores under 620 will need to keep their total housing ratio under 29% and their total overall debt ratios under 41%. These loan types also require additional compensating factors. Call our loan originators for more details!
- We must include monthly childcare expenses paid on this loan type so please include this debt.