VA Home Loan: 100% Financing

06/10/2017

One of my favorite home financing options is the VA home loan. With the $0 down payment option, and no Mortgage Insurance (MI), they are superior to any other loan out there for the majority of buyers’ situations. VA loans do offer very competitive interest rates as well, and USA Mortgage has a lot of different options on closing cost and fees.

VA home Loan in Missouri - USA Mortgage


Highlights you need to know about VA Home Loans


In addition, these loans and their extraordinary benefits are for qualified veterans, and it makes the work very rewarding by helping them become homeowners. These loans tend to have easier guidelines as far as qualifying for credit and income standards are concerned as well.

If you are shopping around for a VA home loan, give us a call or fill out an application online; we can get you pre-approved in just a few minutes, and help you buy your dream home.

Keep looking for upcoming blogs on VA loans; we will blog about the benefits, how to qualify, refinances and guidelines soon.

We talked about the VA home loan being one of the most popular loans for our veterans. These loans have plenty going for them, and the benefits are phenomenal.


Key Benefits of VA Home Loans


No money down for these loans is very desirable, and not having MI makes them even better. VA loans tend to have lower monthly payments than other loan programs, and have much easier qualification standards to go with that.

There are of course, some restrictions for VA loans that we will talk more about in the next chapter, but here are some of the highlights of VA loans:

  • 100% Financing: No need for a down payment.
  • No Mortgage Insurance: Save on monthly expenses.
  • Competitive Interest Rates: Choose from fixed and ARM options.
  • No Upfront Funding Fee: For exempt borrowers, such as disabled veterans.
  • Easier Qualification Standards: More accessible credit and income requirements.

Some of VA Home Loans Restrictions


While VA home loans offer numerous advantages, there are some limitations to be aware of. Our experts are here to guide you through these specifics to ensure you make an informed decision.

  • Property Type Restrictions: VA home loans are primarily for purchasing primary residences. This means they cannot be used for investment properties or vacation homes.
  • Loan Limits: While VA home loans do not have a maximum loan amount, there are limits on the amount of liability the VA can assume. This might affect the loan amount you can qualify for without a down payment.
  • VA Funding Fee: Most veterans using the VA mortgage loan for the first time will have to pay a funding fee, which varies depending on the down payment and the type of service. This fee can be rolled into the loan amount but increases the overall loan balance.
  • Strict Appraisal Process: VA home loans require a VA-approved appraisal. These appraisals can be more stringent than conventional appraisals, focusing on the safety and livability of the property.
  • Seller’s Misconception: Some sellers might be hesitant to accept offers with VA financing due to misconceptions about the process taking longer or being more complicated.
  • Mandatory Occupancy: To qualify for a VA home loan, veterans must certify that they intend to occupy the home. This requirement means that VA loans are not suitable for every real estate purchase.
  • Refinancing Limitations: If considering refinancing a VA home loan, there are specific criteria and limitations to be aware of, especially regarding the amount of equity in the home and the type of refinancing.
  • Income and Credit Requirements: Despite more lenient standards, borrowers still need to meet certain income and credit requirements to qualify for a VA loan.

VA Home Loans Application Process Simplified


Applying for a VA loan is a straightforward process. Start by contacting us at USA Mortgage or filling out our online application. We can quickly pre-approve your application, bringing you one step closer to buying your dream home.

Ready to explore your options with a VA home loan? Reach out to us directly for personalized assistance.


Some FAQs for VA Home Loan


What are the key benefits of a VA home loan?

VA home loans offer several benefits, including 100% financing with no down payment required, no mortgage insurance (MI), competitive interest rates, and easier qualification standards. Additionally, some borrowers, such as disabled veterans, may be exempt from the upfront funding fee.

Who is eligible for a VA home loan?

VA home loans are available to qualified veterans, active-duty service members, National Guard members, reservists, and some surviving spouses. Eligibility is determined by the VA and is based on service requirements and other criteria.

What is the VA funding fee, and who is required to pay it?

The VA funding fee is a one-time payment required for most veterans using a VA mortgage loan for the first time. The fee varies depending on factors like the down payment amount and the type of service. Some borrowers, such as disabled veterans, may be exempt from this fee. The funding fee can be rolled into the loan amount, but this will increase the overall loan balance.

USA Mortgage Abadi Region

USA Mortgage Abadi Region

A full-service mortgage lender with local branches in Missouri, Arkansas, Illinois, and nearby areas.