A VA (Veterans Affairs) mortgage is a home loan program that is available to active-duty military members, veterans, and some surviving spouses.
These types of mortgages are guaranteed by the Department of Veterans Affairs, so lenders who participate in the VA program are protected against loss if the borrower defaults on the loan.
Benefits of a VA loan
Unlike many other types of mortgages, a VA home loan does not require a down payment.
A VA mortgage typically offers competitive interest rates, which can help borrowers save money over the life of the loan.
Since VA mortgages are guaranteed by the Department of Veterans Affairs, borrowers are not required to pay for PMI, which can add up to significant savings over time.
While lenders still look at a borrower’s credit history when considering a VA loan application, the VA program has more flexible credit requirements than other loan programs, making it easier for some borrowers to qualify.
Overall, a VA mortgage can be an excellent option for eligible borrowers who want to buy a home or refinance an existing mortgage.
What are requirements to qualify
To qualify for a VA mortgage, a veteran needs to meet certain eligibility requirements set by the Department of Veterans Affairs.
The basic eligibility requirements for a VA mortgage include:
- Active-duty military members who have served at least 90 consecutive days during wartime or 181 consecutive days during peacetime are eligible.
- a dishonorable discharge is grounds for disqualification
- Certain surviving spouses of veterans who died in the line of duty or as a result of a service-related disability are also eligible.
In addition to meeting the eligibility requirements, a veteran will need to provide certain documentation, such as a Certificate of Eligibility (COE), which verifies their eligibility for the VA home loan program.
It’s also worth noting that while the VA program does not require a minimum credit score or a down payment, individual lenders may have their own credit score and down payment requirements.
Can a mortgage broker help a veteran navigate a VA home loan
A mortgage broker can help a veteran determine if they meet the eligibility requirements for a VA home loan by obtaining the necessary documentation, such as a Certificate of Eligibility.
Your broker can help a veteran shop for lenders who offer VA home loans and compare their rates and terms to find the best option.
They can also assist with filling out the necessary paperwork, including the application and supporting documents.
Lastly, your mortgage broker can help you navigate the VA loan process from start to finish, including working with the lender, appraiser, and other professionals involved in the process.