VA
A VA loan is a home mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and surviving spouses. They are offered through private lenders and typically include benefits like no down payment, no private mortgage insurance, and limited closing costs.
- No down payment: You can often finance up to 100% of the home’s appraised value.
- No private mortgage insurance (PMI): The VA loan program does not require PMI, which can save you a significant amount of money.
- Limited closing costs: The VA sets limits on some closing costs, which can make it more affordable.
- Penalty-free prepayment: You can pay off your mortgage early without any prepayment penalties.
- Lower credit score requirements: VA loans are often easier to qualify for than conventional loans.
- 15-, 20-, 25-, and 30-year fixed, and 5-year adjustable.
Requirements:
Determine your eligibility: You must meet the VA’s service requirements, which vary based on when you served.
Obtain a Certificate of Eligibility (COE): You can apply for a COE online through the VA, and in many cases, you may receive it instantly.