A VA loan makes home ownership more affordable for qualified U.S. veterans, thanks to no-money-down options and favorable terms. VA home loans are provided by lenders, and the VA guarantees a portion of loans for veterans so they can qualify for an attractive financing package. The Veterans Benefits Administration (VA) provides this benefit to qualified veterans to finance a home purchase, and there are several VA loan programs to choose from.
VA Loans are especially attractive to…
- U.S. veterans looking to buy or refinance a primary residence
- Borrowers with limited savings for downpayment and closing costs
- Low- to moderate-income borrowers
No money down
Qualified borrowers may be able to finance up to 100% of the purchase price with no downpayment required on certain VA loan products.
No mortgage insurance
The VA does not require monthly mortgage insurance. A funding fee is generally required for all transactions
Fixed and ARM rate options
Borrowers have several options to lock in attractive VA mortgage rates with terms that meet their needs.
Interest rate reduction refinance option
Refinancing your existing VA loan into a new one with lower interest or terms is available with minimal documentation
No prepayment penalties
Refinance, pay the full loan balance off, or make larger monthly payments at any time with no early payment fees.
Get an idea of what your monthly mortgage payment may be, including costs associated with your mortgage such as property taxes, homeowners insurance, and Private Mortgage Insurance (PMI), if applicable.
Recalculate your new house payment based on loan amounts, interest rates, and other factors, to see if refinancing your mortgage is a smart financial move.
Calculate how much house you can afford. Get an estimate for a mortgage amount that may fit comfortably within your budget.
Frequently Asked Questions
Borrowers can qualify for a VA jumbo loan or a VA Interest Rate Reduction Refinance Loan (IRRRL). Contact a FAM advisor who can help you learn about different VA loans and eligibility requirements.
The VA doesn’t provide financing but does guarantee the loan and sets the guidelines you’re working with an approved lender. Contact an FOA advisor to get the loan application process started.
A qualified veteran is someone who is in active service, or who has served and was honorably discharged from active duty in the Army, Navy, Air Force, Marine Corps, or Coast
Guard. Those who were discharged because of service-connected disabilities and non-remarried surviving spouses of a service member may also qualify.
Active Duty for Training in the Reserves or National Guard members who are not otherwise eligible may be eligible meeting VA additional requirements.
Every eligible veteran is entitled to $36,000 and lenders typically loan up to 4 times the entitlement amount without a downpayment. Loan limits are the same as Federal Housing Finance Agency limits. As of 2019, the VA loan limit is $484,350 for most loans.
Higher credit scores my be required for larger loan amounts, property types, and other factors. Contact an FOA advisor for more details about eligibility requirements.
Borrowers can pay off their VA loan early without any prepayment penalty. However, it’s important to keep in mind that paying down the loan amount early does not lower the monthly payment. The minimum monthly payment requirement stays the same regardless of the remaining balance.
VA loans are only designed for properties that will be your primary residence. VA loan financing for a second home or investment are not eligible.
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Why Finance of America Mortgage?
We’re not about pushing loan papers. We’re about moving your dream forward. And we do that through knowledgeable local advisors, a personal approach, and a variety of smart loan options.