5 things to know before you apply for a VA Loan
Not all lenders offer VA Loans. But at Academy Mortgage, we consider it our privilege.
Here are a few takeaways:
- For those who currently serve or who have served, a VA (Veterans Affairs) Loan is a major benefit you don’t want to miss.
- While VA Loans are widely used, many Veterans and Active-Duty personnel are still unaware of this program that allows them to get a home loan with no down payment.
- Perhaps most importantly: We’ve seen how VA Home Loans can be used to Inspire Hope, making it possible for many of our borrowers experiencing challenges to finally become homeowners.
Did you know that No FICO VA Loans also exist?
If you’re interested in buying or refinancing with no credit or non-traditional credit history, contact your local Academy Loan Officer.
How do you qualify for a VA Loan?
Applying for a VA Mortgage is done the same way as applying for any other home loan. You follow the standard steps:
- Get pre-approved*.
- Find a home and put an offer on it.
- Go through VA appraisal and underwriting.
- Close on your house.
When applying for a VA Mortgage, there are a few things to remember:
- The VA doesn’t provide the loan. Instead, Veterans Affairs works with lenders to verify eligibility for this amazing benefit. Your lender communicates with the VA that you want to use your loan benefit. The VA relays information back to your lender that helps determine your eligibility.
- You can use your VA Home Loan entitlement more than once. A common misconception is that the option to use this loan goes away once you’ve borrowed with it. Thankfully, this is not the case. Provided you reinstate your entitlement and pay off your previous loan, you can apply for and potentially use a VA Mortgage over and over.
- You can’t use a VA Loan on just any property. The loan can only be used to purchase certain types of homes. These might be best defined as move-in ready, single-family homes, a condo, a townhome, and some multi-unit properties and modular houses. A VA Loan is reserved for primary residences.
- There’s no monthly mortgage insurance. A VA Home Loan doesn’t carry monthly mortgage insurance, which may be required on other loan programs when you don’t put 20 percent down. Both purchase and refinance VA Mortgages come with a required funding fee, but it can be rolled into the loan or waived for some Veterans with disabilities related to their service. You may also pay less at closing.
While there are technically no VA Home Loan limits as of 2020, limits may vary by lender. Academy Mortgage has a VA Loan maximum of $2,000,000. You’ll also need to meet length-of-service and other requirements as an Active-Duty servicemember, Veteran, Reservist, or surviving spouse.
We’re here to serve those who have served.
Contact your local Academy Loan Officer to find out if you qualify.
*Pre-approval is not a commitment to lend. All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. Please contact Academy Mortgage for more information. MAC2410-2179300.