VA Loans

VA loans are a good choice for those that have served in our nation’s military.  In order to be eligible for a VA loan you typically need to have one of the following:

  1. Have served 90 consecutive days of active service during wartime.
  2. Have served 181 days of active service during peacetime.
  3. Have more than 6 years of service in the National Guard or Reserves.
  4. Be the spouse of a military member that has died in the line of duty or as a result of a service-related disability.

Your eligibility will be determined by the VA through a Certificate of Eligibility which we can request on your behalf.  We are required to have that certificate in order to process a VA loan.  If you can provide a copy of your DD214’s it helps us expedite that request.

A few VA loan facts:

  1. VA loans have a funding fee. Similar to FHA loans, VA loans have a funding fee that they add to the base loan amount.  That funding fee is based on several factors including your down payment, the number of times you’ve had a VA loan, and whether you’re regular military or National Guard or Reserves.  Some veterans are also exempt from the funding fee depending on their particular situation.  We can help you determine the funding fee that will apply to your specific loan.
  2. VA loans don’t require a down payment. VA loans are wonderful for borrowers because they don’t require a down payment!  Few programs offer that AND such great loan terms.
  3. VA borrowers are subject to a residual income requirement. Unlike FHA, USDA, and conventional loans that require a borrower’s debt-to-income (DTI) ratio to fall within certain parameters, the VA uses a residual income calculation.  That calculation takes into account your debts and proposed mortgage just like a DTI would, but then estimates for things such as taxes, social security, estimated maintenance and utilities, and child care are removed from your gross income.  The residual income calculation requires that after all estimates are deducted from your income you are left with a certain dollar figure on which to live.  That exact amount is determined by your geographical location and your household size.  We can help determine that amount for you too!

Please consult one of our friendly loan officers today to help you determine which loan option is the best for your particular situation!  We’ll do our best to be “The Bright Spot in Mortgage Lending!”