VA Loans: Supporting our Military
Veterans and active duty members are able to finance a home through the Veterans Affairs (VA) Loan. This particular loan tends to be the loan option of choice for many military-affiliated borrowers. It is a government-backed mortgage loan guaranteed or insured by the U.S. Department of Veterans Affairs. On average, a VA Loan is easier to qualify for since the requirements are less strict for government-backed loans.
As the name suggests, eligibility for a VA Loan requires the borrower to have served in the military. For VA Loan purchases, a veteran is considered to be a person who is an active duty service member, a person who has served as an active duty member and was discharged under other than dishonorable conditions, or an un-remarried surviving spouse of a veteran may also be considered for certain benefits under the law. Side note, if you apply for a VA Loan with another person (i.e. a significant other), you both have to be recognized as legally married in order for you both sign for the loan.
VA Loans also have certain qualification criteria that veterans or active duty members must adhere to. Now, you may be wondering what other criteria aside from veteran/active duty status is needed? Well, borrower qualification depends on income level, debt level, credit rating, and the appraised value of the property you wish to buy. All of these factors play into whether or not the VA Loan is an acceptable option for you financially.
Speaking of financial responsibility, the VA Loan sets a limit on the closing costs a veteran must pay. Moreover, a seller can pay all of the closing costs, meaning it is possible for the veteran to move in at no cost. Also, many borrowers receive the added bonus of 0% down and are not required to buy private mortgage insurance (PMI) since the loan is government-backed.
Lastly, veterans can use a VA Loan more than once in their lifetime. So, if you decide further down the line that it’s time to find another home, you are able to utilize the advantages of the VA Loan a second time or even a third time.
First Community Mortgage is honored to serve our military and veterans by helping them on their journey to find a home. Contact the loan office closest to you for more information on VA Loans.