I have just helped a buyer purchase a home who has used a Veterans Affairs Mortgage program No Money Down 100% Financing. For more information please email me or call me anytime on my cell.
Charlene Grant, Realtor Assoc.
Century 21 Pacesetter, 325 E. Rt 72, Manahawkin, NJ
609-312-6625
There are several different standards you must meet to qualify for a VA loan. If you are not sure if you will qualify, you should speak with a mortgage broker or a VA loan professional. One of the first steps towards getting a VA loan is to complete a Certificate of Eligibility. Criteria to qualify for a VA loan:
- Active-duty veterans discharged during WWII or later, without the status of "dishonorable"
- Active-duty veterans with at least 90 consecutive days of service during major conflict
- Peacetime veterans and active duty personnel with at least 180 days of consecutive service
- Enlisted veterans whose service began after 1980 or officers whose service began after 1981 and who have served at least 2 years.
National Guard and Selected Reserve members may also qualify. Check your eligibility with a qualified VA loan specialist if you have any questions.
You can use your VA loan to purchase a house, condominium, or townhouse. You can also build a home, make energy-efficient home improvements, or refinance your mortgage.
There are several reasons why a VA loan may be preferable to a standard loan. Most important, if you qualify, you may obtain a VA loan even if you did not qualify for other loans. There may be no down payment required for a VA loan, depending on the lender. VA loans rates are often lower interest rates than conventional loans, and many times you can negotiate the interest rate with the lender. There are no mortgage insurance premiums on VA loans, and assumable mortgages are permitted. Closing costs can be lower than other forms of financing, and there is no penalty for prepaying your mortgage, as in some other forms of loans. In addition, VA assistance is available to those who qualify if temporary financial difficulty occurs.
The VA does not put a cap on how much money you can borrow, this is determined by the lender, typically a bank, savings and loans, or mortgage company. The basic entitlement of a VA loan is $36,000, but some loans are eligible for $60,000 if they are over $144,000. A lender will often loan up to four times the amount of the basic entitlement without requiring a down payment.
Limit increase! Although there is no set maximum limit the VA allows you to borrow with your entitlement, most lenders and financial institutions will not approve a total of over $417,000. Lenders typically sell VA loans in a secondary market, where the cap for a loan limit is $417,000.
Veterans who have already taken out a VA home loan in the past may be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, many people with prior VA loans may be eligible for more money now than they were previously. Complete our form or call us today to find out if you qualify.
VA Loan History
The VA home loan guaranty program was established in 1944 to aid veterans returning from war. The goal of VA home loan benefits was to help Veterans toward purchasing or refinancing a home in gratitude for the sacrifices they made by serving our country.
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