How does a VA Loan work?
A VA loan is a mortgage loan that is guaranteed by United States Department of Veterans Affairs (VA). These kinds of loans are available to Service Military Members as well non-remarried spouses. First Savings Mortgage is qualified lender that offers these unique loans and creates these loans that are guaranteed via the VA. And because VA home loans are guaranteed, they don't require mortgage insurance. VA loans are usually easier to qualify for because there is a lower minimum credit score requirement. This requirement can vary but you can talk to a Loan Officer to discuss your saturation more in detail.
Do I qualify for a VA Home Loan?
You may be eligible for a VA loan based on the following:
- You are a member of the Military and have served at least 6 months under active duty
- You are a Veteran
- You are a Reservist or a member of the National Guard (Veteran, Reservists, and National Guard can also apply)
- You can obtain a Certificate of Eligibility (COE)
Is a VA Loan right for me?
Oftentimes, with a VA Home Loan, there is no need for down payment to purchase a home. Because there is also no need for Mortgage Insurance, this means additional savings in upfront costs. While other types of Mortgage Loans can look attractive to a potential homebuyer, a VA Home Loan is unique to Military Service Members. This loan is considered a benefit of our country's service members and their families. There are not many mortgage loans offered in the market today that do not require mortgage insurance (that don't come with other contingencies) so this product in nature is key differentiator.
Who pays closing costs on a VA Home Loan?
Typically, the borrower would still pay a Funding fee if this is their first time getting a home and not putting any money down. This funding fee varies depending on if you decide to put some money down for a down payment. You can actually have multiple VA loans if you qualify to have a VA Home Loan.
Contact your local Loan Officer today to go over qualifications and your unique needs.