What is a VA Home Loan?
VA Home Loans are a type of loan made available to qualified veterans, active duty service members and their spouses. VA Home Loans do not require a down payment, and are insured by the government through the Department of Veteran Affairs.
The VA insures a portion of the loan and protects the mortgage lender in the event of mortgage default.
A VA home loan makes home ownership more obtainable for qualified U.S. Veterans and those who are currently serving in the military due to the zero-down payment options, looser credit requirements, and favorable interest rates.
What are some of the benefits and requirements of a VA Home Loan?
- VA Loan Rates are typically lower than conventional loans.
- VA Loans do not require a down payment.
- No (PMI) private mortgage insurance required.
- A VA Loan allows you to carry a higher DTI limit w/ compensating factors (ex: Cash Reserves or Residual Income)
- A minimum FICO credit score of 620 is required to qualify.
- The home must be appraised by an VA-approved appraiser, and meet the VA's MPR (Minimum Property Requirements) to ensure that the home is safe, structurally sound, and in overall good condition.