VA loans provide the opportunity to finance 100% of your home's purchase price, requiring no down payment. However, buyers must still qualify for the loan, which involves an evaluation of credit and payment ability. If you are experiencing financial difficulties, a lender may require you to reduce debt or save additional funds before approving the loan.

Closing costs—Are capped at 4% max that can be charged; such as title recording fees, appraisal, survey and legal expenses to name a few. Sometimes you can negotiate seller concessions that will help pay these fees for you. Talk to your realtor about negotiating seller concessions to pay for your closing costs.

The VA Loan Process

The VA loan process is similar to other home purchases. You'll make a written offer to purchase a home, specifying conditions like price and closing cost assistance, and then go through an approval process with a lender. A key distinction with VA loans is that the Department of Veterans Affairs requires homes purchased through this program to meet specific habitability standards. An inspector and appraiser from the VA will assess the home's condition and value. (pest inspection required on al VA loans)

This inspection may occasionally cause delays if repairs are needed. Issues found do not necessarily disqualify the loan but will need to be addressed before completing the purchase. The VA now offers a limited renovation loan option for homes requiring repairs.

How VA Loans Work

- Purchase your home with as little as 0% down payment.

- Available in 30-, 25-, 20-, and 15-year fixed-rate terms.

- A 5-year adjustable-rate mortgage is also available.

- Jumbo VA loans are offered for higher loan amounts.

- VA Streamline Refinance is available with reduced fees and flexible documentation for veterans with existing VA loans.

- No monthly Private Mortgage Insurance (PMI) is required.

- VA loans are governed by the U.S. Department of Veterans Affairs.

- Pay off your mortgage anytime without pre-payment penalties.

Have Questions? Give us a call! One of our mortgage specialists will be happy to answer all your questions.