VA Loan

VA Loan

A VA loan is a mortgage provided through a U.S. Department of Veterans Affairs program available to active and veteran service personnel and their surviving spouses. It is backed by the federal government but issued through private lenders.

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What Is a VA Loan?

A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA). With the help of VA loans, veterans, service members, and their surviving spouses can buy homes with little to no down payment or private mortgage insurance and normally get a competitive interest rate.

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Perfect credit
Eligibility criteria
Long processing time
You’re more likely to default
Unexpected Out-of-Pocket Costs

Perfect credit

Myth

You need perfect credit to be approved.

Fact

False. While the VA encourages approved lenders to provide VA loans to all qualified applicants, it does not describe a minimum credit score.

Eligibility criteria

Myth

Only combat veterans are eligible.

Fact

Veterans, active duty servicemembers, reservists, National Guard members, surviving spouses, and other individuals can earn eligibility for home loan benefits.

Long processing time

Myth

VA inspections and appraisals take too long.

Fact

The VA has streamlined and modernized inspections and appraisal processes in recent years, and closing times have come down to as low as 55 days.

You’re more likely to default

Myth

You’re more likely to default.

Fact

The too-good-to-be-true details of VA loans do raise the question: Is it really a good idea to give borrowers with poor credit scores mortgages with no money down? In fact, VA borrowers rarely default.

Unexpected Out-of-Pocket Costs

Myth

VA loans have unexpected out-of-pocket costs.

Fact

False. In fact, VA loans are known for their benefits, including no private mortgage insurance (PMI) and, in most cases, zero down payments.

How Does A VA Home Loan Work?

The VA does not issue VA loans, but they do determine who qualifies for one and which lenders issue them. There are several VA loans, and they pose less risk to lenders because a government agency backs them.

VA mortgages are considered non-conforming loans because they don't satisfy the policies of conventional lenders Fannie Mae and Freddie Mac. However, this permits more flexibility for clients to qualify because of their easier credit score prerequisites. In addition, they offer many advantages over conventional loans, including lower interest rates, more lenient borrowing needs, and no down payment due at closing. VA loans also never have monthly mortgage insurance.

Is a VA Loan a viable option?

VA loans are arguably the most potent loan option on the market. They come with big-time benefits, including a $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines, and the industry's lowest average fixed interest rates. However, every Veteran buyer's situation is different, and going over your loan options with a home loan specialist can help ensure you make the best financial decision possible.

VA loans help Veterans and service members become homeowners without spending years building great credit or saving for a significant down payment. They've been a lifeline for younger homebuyers in particular. This hard-earned benefit program continues to fulfill its original mission nearly eight decades after its creation.

Guidant Mortgage Group

We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.

PHONE

(864) 275-0941

E-MAIL

boyette.belton@guidantmortgagegroup.com

ADDRESS

Simpsonville, SC 29681

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Disclosure:
The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.
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