VA Home Loans
After giving your all to your country, you deserve to come back to the home of your dreams. VA home loans turn your dreams into reality, and the experts at Homesite Mortgage are here to ensure you get approved.
Our in-house underwriters enable us to approve 98% of VA loan applications when the applicant's credit score is over 600.
Specializing in helping veterans refinance or purchase the homes of their dreams.
What Is a VA Home Loan?
VA home loans help servicemen and women become homeowners. The U.S. Department of Veterans Affairs backs them, so private lenders are willing to offer lower interest rates, not require a downpayment and provide many other benefits most loan applicants are not offered.
Who Is Eligible for a VA Home Loan?
VA home loans are available to anyone who:
- Is actively serving in the U.S. military
- Has served in the U.S. Armed Forces
- Is the spouse of a current servicemember or veteran
Some VA loans stipulate a minimum active service time required for you or your spouse. This term can vary based on the lender and whether your active duty was spent serving in a war, but it can be as little as 90 days.
Benefits of a VA Home Loan
VA home loans can carry significant advantages over other types of home loans, making them a more attractive choice for those who qualify. Some of the main benefits include:
- Fewer financial restrictions and lower closing costs: Many VA home loans don't require a down payment or private mortgage insurance since they're government-guaranteed, which can be barriers for lower-income households. There are also no restrictions on using gifted funds toward your closing costs.
- Competitively low interest rates: Some other lower-down-payment loan options will require higher interest rates or will be less competitive with their rates. VA loans allow for lower closing costs while still being very competitive with the interest rates.
- Better accessibility: You can apply for a VA home loan even with a lower credit score. We've helped people with scores as low as 580 get approval. Furthermore, VA loans typically have a lower interest rate and restrictions on additional fees, making your mortgage more affordable.
- An easier process: It's no secret that buying a house requires paperwork. However, VA loans require less documentation than most. Also, VA loans allow you to assume a mortgage if there's already an existing mortgage on the property you're purchasing instead of qualifying for a new one.
- No private mortgage insurance (PMI): With other home loan options, you will be required to pay for PMI if you put down less than 20% on the house. With a VA loan, there is no private mortgage insurance.
- You can use your benefits multiple times: Being a lifetime benefit, there is no limit to the number of times you can use your VA home loan benefits as long as you are using it on your primary residence and not an additional investment property or vacation home.
VA Home Loan Options
When you apply for a VA home loan, you'll need to specify how you'll use the loan. The most common ways people use a VA loan are as:
- Purchase loans: Use your VA home loans to buy a home.
- New construction loans: You can build a house from scratch or add onto your existing home.
- Cash-out refinances: Use some of your home's equity to pay for other needs, like debts or groceries.
- Debt consolidation: Combine all your debt under one loan with a lower interest rate.
VA Home Loan FAQs
What's the difference between a conventional loan and a VA loan?
Compared to conventional loans, VA loans:
- Have lower credit score requirements.
- Offer more competitive interest rates.
- Don't require extensive down payments or mortgage insurance.
- Have more lenient terms.
What is the maximum VA home loan limit?
VA home loans do not have a maximum loan amount. You could receive a $5,000,000+ VA home loan if you wanted to—there is no limit! Previous guidelines capped loan limits at $144,000, but this rule was abolished in 2020 so long as you have full entitlement.
Is there a limit to how many times veterans can use a VA loan?
Veterans can use their VA benefits to refinance or purchase a home multiple times. You can use this benefit for as long as you want to be a homeowner!
What cash-out refinancing options are there for VA home loans?
VA home loans allow for 100% cash-out refinancing, which can be used for anything—pay off debt, make home improvements, or for whatever other reasons you need cash.
Do I need an appraisal for refinancing an existing VA home loan?
Refinancing an existing VA home loan does not require an appraisal in most cases.
Is it challenging to qualify for a VA home loan?
VA home loans are typically easier to qualify for than other programs. The underwriting guidelines are less strict regarding a borrower’s income limit, especially if the veteran has a good credit history.
Are mortgage payments lower with a VA home loan?
VA home loans typically offer lower monthly payments due to lower interest rates and the absence of mortgage insurance, regardless of how much you owe or what the property is worth.
Can active duty military members apply for a VA home loan?
Active-duty military members are allowed to use their VA benefits to purchase a home for their family, even if they are away or on tour.
Can surviving spouses of veterans apply for a VA home loan?
Widows and widowers of veterans who have died from a military service-related disability can also qualify for a VA mortgage.
How long do I have to serve to qualify for a VA home loan?
Veterans who served during a time of war could qualify for a VA home loan with as little as 90 days of active duty service, depending on the qualifying wartime.
Is there a minimum down payment for VA home loans?
VA home loans allow for a $0 down payment for most purchases. Additionally, if a down payment is provided, the loan-related fees—which are always financed (if applicable)—are significantly reduced.
Why Homesite Mortgage Is the Preferred VA-Backed Loan Company in Missouri, Michigan, Illinois, Florida and Louisiana
At Homesite Mortgage, we're passionate about helping servicemembers, veterans and their families find homes they love without the stress of conventional loans. Many of our loan officers have gone through the VA home loan process themselves, so they know exactly how to get you the best offer and make the most of your loan. We'll be by your side throughout the entire process and go the extra mile to ensure your success. Take the first step to buying your home by scheduling a call with us today.
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