What is a VA Mortgage Loan?
The Department of Veterans Affairs (VA) guarantees home loans. Veterans who qualify for a VA mortgage loan must obtain a Certificate of Eligibility (COE). Determinations of eligibility are based on the length of service and are issued to veterans who were not discharged dishonorably. VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners with guaranteed portions of the loan.
What Are The Requirements for a VA Mortgage Loan?
Although there are a few exemptions, including exemptions for veterans with disabilities, most VA mortgage loans include a funding fee, which the veteran can finance. The funding fee ranges from 0.50% to 3.30%, depending on what type of loan the veteran is obtaining and whether it is his/her first time use of loan eligibility.
Benefits of a VA Mortgage Loan
- No down payment required
- Competitively low interest rates
- Limited closing costs
- No need for Private Mortgage Insurance (PMI)
- The VA home loan is a lifetime benefit: you can use the guaranty multiple times