VA Home Loans for Veterans from Landrum Loans
For military members, veterans, and some military spouses, your service will often make you eligible for a VA loan. This is a valuable benefit that enables you to purchase your home with no down payment, even if you have a low credit score. If you have served in the military and are considering how to finance a new home, the VA loan is likely your best choice.
Landrum Loans is a mortgage loan originator who is proud to assist military members and veterans purchase, build, or refinance a home. We are here to advise you throughout the loan process, helping you qualify for a VA loan and providing the advice you need to make the right financial decisions for your family. Give us a call at (916) 813-9306 or fill out the online application to learn more about the VA loan program and how it can help you obtain homeownership.
What is a VA Loan?
The VA loan program was established in 1944 to help returning veterans purchase homes despite rising real estate costs. Today, these loans are more important than ever for servicemen, servicewomen, and veterans. The real estate market across the US is becoming increasingly competitive, and down payments are often more than most families can save for.
Backed by the Department of Veterans Affairs, lenders are about to offer VA loans to military families without requiring a down payment. This backing also keeps mortgage interest rates down to help you get a reasonable monthly payment on your new home.
Since its inception, the VA loan program has helped millions of veterans purchase homes, and it is a great option for everyone from first time home buyers to those looking to move in the area or improve upon their existing home.
Types of VA Loans
The majority of VA loans are backed by the VA. This means that private lenders issue them, although the VA agrees to cover a portion of the loan if the borrower is unable to pay. With less risk, lenders are able to provide loans on better terms and to borrowers that may not be able to get approved for conventional loans. The three types of VA loans are:
- VA Purchase Loans – Purchase loans are available for home buyers looking to purchase a home in Colorado, and generally on much better terms than private loans.
- Interest Rate Reduction Refinance Loans (IRRRL) – This type of loan can sometimes grant you a better repayment rate on an existing VA loan.
- VA Cash-Out Refinance Loan – You can take cash out against the equity of your home to pay for other debts or large purchases if you qualify.
The exception to the VA-backed loans is the Native American Direct Loan (NADL) program. This program provides home loans to Native American Veterans or Veterans married to Native Americans. These loans are paid out and managed by the VA, often subsidized to provide better interest rates than other loans. You can use an NADL to purchase, build, improve, or repair on federal trust land.
How to Qualify for a VA Loan
The primary qualification factor is that you are an active service member or veteran, or the spouse of one. For the purpose of this loan, the VA considers those who meet one of the following criteria to be eligible to apply:
- Veterans or active service members who have served 90 consecutive days during wartime.
- Veterans or active service members who have served 181 consecutive days during peacetime.
- Members of the National Guard or Reserves with more than 6 years of service.
- Spouses of a service member who lost their life in the line of duty or because of a disability acquired during duty, and has not remarried.
Depending on your service history, you will need particular forms to document the length of your service. With these, you can apply for a Certificate of Eligibility in order to apply for your loan. Since we are familiar with all of the requirements of these loans, Landrum Loans can help you determine everything you need to get a VA loan.
Beyond a service history, you will also need to meet these qualifications:
- Property must be a primary residence.
- Funding fee between 2.3% and 3.6% of the total loan amount.
- Reserve funds to cover closing costs.
Unlike most other loans, there is no required down payment, FICO credit score, debt to income ratio, or income associated required by the VA, although the lender may have their own requirements. At Landrum Loans, we can help you get the best terms for your loan to help you find out which home you can afford.
Why a VA Loan May Be the Best Choice for You
If you are eligible for a VA loan, they offer many advantages that you will not find with a conventional loan or even other government-backed loan programs. These advantages include:
- No Down Payment – VA loans typically require $0 down, one of only two loan types to do so. This lets you purchase a home without extensive savings and also cuts cost up front so that you can spend on home improvements and furnishings.
- Low Interest Rates – Currently, interest rates and APR on VA loans for both 30-fixed and 15-year fixed terms are below 3%. This is possible with the VA backing these loans, and make them one of the most affordable options in the long term for service members.
- No Private Mortgage Insurance Required – VA loans are one of the few that do not require PMI, or private mortgage insurance, despite not putting 20% down for your loan. This can save you up to 1% of the total loan amount each year.
- More Flexible Qualifications – VA loans require no minimum credit score, no minimum debt to income ratio, no income requirement, and only a few requirements to qualify for a loan, making it possible for veterans and service members to qualify regardless of their background.
- No Equity Required to Refinance – You are able to refinance your home for up to 120% of its value to secure a lower rate. Unlike other loans, this lets you refinance even when you owe more on your loan than your home is worth.
VA loans are also a lifetime benefit. Once you establish eligibility, you can receive a VA loan multiple times, without a cap on the amount, for any real estate transaction you make during your life.
There is no maximum amount that you can borrow, but the VA does limit how much they will cover depending on the cost of the area where you are purchasing a home when there is no down payment. Lenders may cap the amount they are willing to lend, which can impact the size of the home or location where you are able to purchase.
If you are looking for a larger house, VA jumbo loans are another option with no down payment in many cases. Landrum Loans can help you navigate this loan type and decide if it can help you purchase your dream home.
Apply for a VA Loan Today with Landrum Loans
Your military service, or your spouse’s, was a valuable contribution to our country, and a VA loan is one benefit available to thank you for that service. Michael Landrum and Landrum Loans are here to explain more about the loan terms, eligibility, and benefits of a VA loan. When you are ready, we can help you qualify for a VA loan for your home purchase . Browse the resources on our website, get started with an application, or call us directly at (916) 813-9306.