Highlights of the VA Loan Program:
- Allow borrowers to purchase or refinance 1-4 unit owner occupied townhouses, condos, and PUDs
- No down payment required
- No monthly mortgage insurance required
- Liberal qualifying ratios
- Gift funds may be used for down payment, closing costs, and prepaid expenses
- Loan limits depend on geographic location
- No first-time homebuyer restrictions
- VA mortgages are assumable
What is a VA Mortgage?
A VA mortgage is a home loan made by an approved lender, but is guaranteed by the Department of Veterans Affairs. As an approved VA Lender, Homestead Funding Corp. has provided millions of dollars of VA loans to thousands of clients throughout our history.
How a VA Mortgage works:
To be eligible for a VA mortgage you must be able to obtain a certificate of eligibility from the Department of Veterans Affairs. Please refer to this eligibility chart for specific VA requirements.
The VA does not lend the money; it simply guarantees a percentage of the loan balance will be paid if the buyer defaults.
VA mortgages tend to be more forgiving than conventional mortgages in terms of past credit history. A bankruptcy discharge as little as two years ago may not hinder a homebuyer from qualifying for the VA program.
The primary advantage of a VA home loan is that there is no down payment required on a loan of up to the Freddie Mac conforming limit. VA loans charge the borrower a non-refundable upfront funding fee (Guarantee fee). This fee can be financed, paid out-of-pocket, or can be paid by the seller as a concession. VA loan limits are dictated by geographic location. Consult your Loan Originator for details about your area.
Purchase and Refinance transactions are eligible for VA loan programs.
You will benefit from the VA Loan Program if you:
- Have no down payment and need lenient credit score requirements
- Require less restrictive gift guidelines
- Are looking for more forgiving requirements in terms of past credit history
- Are a qualifying veteran