Your Complete Guide To VA Home Loans

A Veterans Affairs mortgage, better known as VA loan, is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs and can offer considerable benefits for eligible military veterans, service members and their spouses who want to buy a home.

Since the VA loan was created in 1944, this historic benefit program has helped more than 22 million veterans start their homeownership journey and has the potential to help you, too!

If you think you may be eligible for a VA loan, here are some things to know about the program.

November 5, 2018

A Veterans Affairs mortgage, better known as VA loan, is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs and can offer considerable benefits for eligible military veterans, service members and their spouses who want to buy a home.

Since the VA loan was created in 1944, this historic benefit program has helped more than 22 million veterans start their homeownership journey and has the potential to help you, too!

If you think you may be eligible for a VA loan, here are some things to know about the program.

What is a VA loan?
Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally-qualified lenders, like USA Mortgage, and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice.

A VA loan may be used to:

● Purchase a home
● Purchase a condo
● Build a home
● Refinance an existing home loan
● Make improvements to a home

Do I qualify for a VA loan?
VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. You may be eligible for a VA Home Loan if you meet one or more of the following conditions:

● Have served 90 consecutive days during wartime
● Served 181 consecutive days during peacetime
● Have served more than 6 years in the National Guard or Reserves
● Are a surviving spouse to a deceased veteran

Advantages of VA loans
Though VA Home loans have an upfront funding fee, this fee can be financed into the loan. Additionally, even with no down payment, there is no mortgage insurance expense added to the monthly payment.

Those who can benefit from VA loans include:
● Clients who wish to put little or no money down
● Eligible veterans and their spouses purchasing a primary residence
● Clients with lower credit scores and higher debt-to-income ratios

Affordable financing options for U.S. veterans
With USA Mortgage, you can join the thousands of veterans who have started their homeownership journey, with as little as zero dollars down for qualified borrowers. With lower down payments and credit score requirements, we also offer the following financing options:

● 100 percent financing within conforming loan limits and no down payment required (unless required by the lender, the purchase price is more than the reasonable value of the property or to meet the 25 percent VA Guaranty)
● No mortgage insurance
● Relaxed credit standards; no monthly cash reserves required*
● Seller contributions and concessions allowed up to 4 percent
● No max on including closing costs and seller can pay all allowable closing costs

*Please note: An underwriter could ask for reserves if high debt-to-income ratio, poor credit, bankruptcy, or use of a financial company.

The USA Mortgage Advantage
At USA Mortgage, our VA Division’s mission is much more than to provide veterans with a home mortgage—it’s to “proudly serve those who have, and continue to serve.”

Whether it’s dedicating time to organizations such as H.E.R.O.E.S. Care and USA Cares, spending time with Veterans playing BINGO or helping families of deployed Veterans keep their homes, our VA Lending Division is there.

For more information, you can visit our website or contact us toll-free at 888-250-6522 to take the next step toward making your dream of owning a home a reality.