The VA Home Loan is a program offered specifically to United States military veterans, reservists, active duty members and their families. This program is designed to help make home ownership possible for our service men and women. A VA home loan features no down payment, no private mortgage insurance, low closing costs and can accommodate those with lower credit scores and a complex financial past.
While the government does not act as a lender, the loans come from private mortgage lenders, however the government does back or guarantee the loan which allows the lender to offer a competitive loan program on a $0 down payment loan.
For the majority of veteran borrowers the VA home loan is the most powerful tool to obtain homeownership.
The VA home loan can be used multiple times but it cannot be used on a second home, investment property or fixer upper. To use the VA loan a second time the first loan will have to be paid off in full.
The VA Home Loan Process –
1. Obtain your COE for the VA Home Loan –
In order to apply for a VA home loan you will need to show a Certificate of Eligibility. You can apply for a COE on the U.S. Department of Veterans Affairs website. This is also a good place to review the requirements. Your loan officer will need your COE as part of the application process.
2. Find a VA Lender –
Not all mortgage lenders are able to offer VA home loans. Finding a reputable mortgage broker in your area who offers the VA home loan is an important first step. There are some unique steps in the VA process so you want someone who has experience with this type of loan for ease of the transaction. If you are eligible for the VA home loan you will still need to meet income and credit requirements with the lender you choose.
3. Obtain a Pre-Qualification and Start Your Home Search –
A pre qualification letter is provided by your lender to show sellers that you are submitting an offer on a home you can afford. Pre-qualification letters can help you stand out from other buyers especially when them come from well respected local lenders. Once you have this piece you can begin looking for homes to buy with the help of a buyers agent.
4. The VA Appraisal –
The VA appraisal is specific to the VA home loan. The purpose of the VA appraisal is to ensure the value of the property is there and that the property itself meet the minimum requirements. A VA home loan property is typically a move in ready home.
5. Underwriting and Closing –
Your VA loan will go through the underwriting process in order to get it to closing.
The VA home loan can be a wonderful opportunity for homeownership for our veterans, service members and their families. When deciding to apply for a VA home loan you will want to be confident you are working with a mortgage broker who understands the unique process and can get you into the home you want.
Legacy Mortgage, LLC is a mortgage broker serving the Upper Valley area and beyond. Our team has a collective 70 years of lending experience and we have successfully navigated the VA home loan. process for years. If you are starting on your home buying journey you can request a quote or give us a call today at 603-643-7400 and we can get started on your pre qualification.