The Truth, The Whole Truth & Nothing, But The Truth About VA Loans
CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc.
Published on May 24, 2022
The Truth, The Whole Truth & Nothing, But The Truth About VA Loans - CMS Mortgage Solutions

The Truth, The Whole Truth & Nothing, But The Truth About VA Loans

VA Loans are a great option for eligible veterans and service members when purchasing a home. This type of loan comes with many benefits, such as no down payment and low interest rates, making it easier for veterans to become homeowners. VA loans are a distinct type of home loan, but they aren’t more complex or time-consuming than other forms of financing. In fact, the VA loan process is relatively simple and can be completed in a matter of weeks. Here’s everything you need to know about VA Loans, including the eligibility requirements and how to apply!

Verify my mortgage eligibility (Dec 10th, 2022)

What is a VA Loan?
A VA loan is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). This type of loan is available to eligible veterans and active-duty service members as a way to encourage home ownership. The VA loan program was created in 1944 as part of the GI Bill, and has since helped more than 22 million veterans and service members purchase a home.

What Do You Need to Apply?
To apply for a VA loan, you will need to provide some basic information and documents. The VA will need to know your:
– name
– Social Security number
– date of birth
– military status
– branch of service
– approximate date of release or retirement from the military
You will also need to provide documentation proving your income, assets, and credit history. The VA will use this information to determine if you are eligible for a loan and what interest rate you will qualify for.

Verify my mortgage eligibility (Dec 10th, 2022)

VA Loan Requirements
VA loan requirements vary depending on what type of veteran you are. For example, if you are an active duty service member, you will need to meet different requirements than a veteran who has been discharged from the military. However, there are some general requirements that all veterans must meet in order to qualify for a VA loan.

First, you must have served in the military for at least 90 days during wartime, or 181 days during peacetime. If you were discharged early due to a service-related disability, you may still be eligible for a VA loan.

Second, you must have a good credit history. This means that you have made all of your previous debt payments on time and that you don't have any bankruptcies or foreclosures in your history.

Verify my mortgage eligibility (Dec 10th, 2022)

Third, you must prove that you have the financial resources to make a down payment on your home and to cover the monthly mortgage payments. For most VA loans, you will need to make a down payment of at least 3.5% of the purchase price of your home.

Fourth, you must obtain a Certificate of Eligibility from the VA. This certificate is proof that you meet the basic service requirements for a VA Loan.

Types of VA Loans

Verify my mortgage eligibility (Dec 10th, 2022)
  • The VA Purchase Loan: VA purchase loans make it possible for Veterans to acquire single-family homes, condominiums and manufactured homes as well. The type of property depends on your location in the country, but there are some common requirements that all lenders must meet when purchasing these properties.
  • VA IRRRL: VA Interest Rate Reduction Refinance Loan (IRRRL) is a low-cost loan that doesn’t require credit underwriting or income verification. It is one of two refinancing options the VA provides. They work well in certain circumstances and are considered a simple way to relieve some of the stress a loan can put on a veteran.
  • VA Cash Out Refinance: The VA cash-out refinance allows veterans with and without current loans to be eligible for this innovative new way of borrowing more money. Qualifying homeowners can refinance their mortgage and withdraw equity from their house. This is a great option if you want the flexibility, ease or even interest rate reduction that comes from refinancing your home.
  • VA Energy Efficient Mortgage: The Department of Veterans Affairs offers loans to veterans and their families who need help with energy efficiency upgrades. These funds can be used for everything from installing storm windows, heat pumps, solar panels on homes purchased or refinanced through the VA’s mortgage program – up until you reach $6K in forgiveness per eligible improvement.

VA Loan Benefits
1. No down payment required: With a VA loan, you don’t need to put any money down when you purchase a home. This can be helpful for veterans and service members who may not have enough saved up for a down payment.
2. Low interest rates: VA loans come with some of the lowest interest rates available. This can save you money on your mortgage payments each month.
3. Flexible eligibility requirements: Unlike other types of mortgages, VA loans have flexible eligibility requirements. This means that more veterans and service members are able to qualify for a loan.
4. No Private Mortgage Insurance: PMI is a type of insurance that helps protect lenders in case you default on your loan. It can be expensive, costing hundreds of dollars each year, so avoiding it can save you a lot of money over the life of your loan.

The VA loan is a great option for veterans and military service members who want to buy or refinance their home. It's an easy way to obtain a low cost mortgage, even if your credit isn’t perfect!

For service members and veterans alike, the VA loan is a great option for homeownership. It is important to know and understand these special government-backed loans, including rates of qualification, requirements, as well benefits that are available only because they’re backed by our country’s strongest economy: yours!

Show me today's rates (Dec 10th, 2022)
CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc. Virginia Beach
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(757) 558-2603