VA home loans are mortgages guaranteed by the United States Department of Veterans Affairs that are designed to offer long-term financing to eligible American Veterans to purchase a primary residence. VA home loans are provided by approved lenders such as ourselves.
VA has eliminated the down payment requirement on Jumbo VA loans for eligible VA buyers. In the past, for example, a $1,500,000 sales price required a down payment of approximately $200,000 to a qualified VA buyer; $1,000,000 required approximately $75,000; and $800,000 required approximately $25,000. Now all of these examples require $0 down payment if the VA buyer’s income and credit qualifies and he/she has full eligibility.
To be eligible for a VA loan, you must have served in the military in the past, for at least 90 days during wartime or 181 days during peacetime, or currently be active duty. Full eligibility allows for a 100% loan regardless of the sales price.
VA home loans have many benefits, including:
• Require no down payment nor mortgage insurance if you have full eligibility
• Provide a 30 year fixed interest rate that is usually lower than that of Conventional loans
• Allow for a higher debt to income ratio
• Give borrowers the opportunity to purchase when their credit does not allow them to qualify for a Conventional loan
• Have a shorter time-frame for approval after a short sale, foreclosure, or bankruptcy (Just 2 years)
• VA eligibility never expires
• No funding fee for Veterans receiving at least 10% VA disability
If your VA eligibility was used to purchase a home in the past with no down payment and has been sold and the loan paid off, you should be able to use your VA to purchase a home again. If you purchased a home using your VA eligibility and it is now rented with your VA loan still on the home, you may have unused eligibility that can be used to purchase another home; however, you may need to make a down payment.
Please call us to see if you qualify today!