A VA loan is a mortgage loan guaranteed by the US Department of Veterans Affairs. Designed for military veterans, military members currently serving, reservists and select surviving spouses, a VA loan can be used to purchase a home.
The main highlight of a VA loan, by design, is that it allows the option to purchase a home with no down payment, and is issued through a lender, not the VA itself.
A veteran may borrow up to 103.3% of a home’s financing without private mortgage insurance and even up to $6,000 for improvements such as solar panels, insulation upgrades, or anything that falls under energy efficiency.
Qualifications for a VA loan start with (I hope this one is obvious) proof of military service or any of the aforementioned recipients listed in the opening paragraph. In addition, applicants need to provide proof of gross household income for the past two years (W2 statements), two pay stubs, financial documentation (investments, savings, checking, and trust fund accounts), the DD 214 (discharge papers) and a certificate of eligibility.
Again, as I’ve said before in any article I write about loans, if you’d like the expert advice of a REALTOR, I’m your guy. But if you’re looking to pick the brain of an expert mortgage lender, I’d be happy to put you in touch with any number of contacts I’ve done business with and trust completely.
If you’d like more information about VA loans, or any loans for that matter, please don’t hesitate to reach out and I will respond as soon as I can.