What Is a VA Home Loan
For veterans, active service members, and eligible surviving spouses, the Veterans Administration offer VA loans – a lower-interest, zero down mortgage designed to help make the path to homeownership easier for those who served our country. While the mortgage is made by lenders like GoPrime, it’s backed by the Department of Veterans Affairs.
VA Loan Requirements as of 2019
The main requirement for a VA home loan is military status – you must either be a veteran or actively serving in a branch of the military. Also, some surviving spouses may be eligible for VA loans. In order to apply for a loan, you have to show a Certificate of Eligibility, which you can apply for through the VA website, or your mortgage lender can help you get started!
Unlike FHA loans or USDA loans, there are no requirements from the VA regarding debt-to-income ratio, credit score, and employment history. The only additional guideline beyond a COE is that the loan can only be used for your primary residence.
Advantages of a VA Loan
- Zero down mortgage
- Seller can pay closing costs
- Typical interest rates lower than standard rates
- Relaxed qualification standards
- Refinance up to 90% of home value
- Roll funding fees into the loan amount