What are VA Loans?

The Department of Veterans Affairs (VA) administers VA loans. This program can help people who serve our country purchase the home that they deserve. There are also many benefits with using this government-backed program. This program was created after the Second World War to help military and their families find the American Dream. Many qualifying Veterans are able to secure 100% financing when they qualify. This week, Nickel City Funding in Orchard Park, NY is here to share all the great things to know about VA Loan programs. Contact our office or visit our website for a hassle-free quote!

How VA Loans are organized

VA Loans are set up to diminish the risk for the lender to offer a 100% financing loan if the person qualifies. Yes, this means you may not need to have a down payment saved to secure a home with this program. However, there are strict rules on the amount of loan you can borrow, as well as the type of home you can buy. The home will also have to pass the VA standards.

The Many Benefits that come with a VA Loan

The VA Loan program was set up to offer deserving service members many perks as they buy a home. Below are some of the numerous benefits:

  • No down payment required, if you qualify
  • Lower costs and fees, including caps on closing costs
  • Low interest rates as long as the person qualifies
  • No requirements for monthly mortgage insurance premiums
  • No penalties for paying off the loan early
  • Refinancing options are available with the VA
  • You can re-use the entitlement
  • There are high standards to ensure you get a quality and safe home.

The Process of Qualifying for a VA Loan

It is important to ensure that you will qualify for a VA Loan, because you cannot get this mortgage without a Certificate of Eligibility (COE) from the VA. Visit the VA website or contact our team for the most up-to-date requirements. You can also get in touch with the VA to help ensure that you have the right documents to secure your COE.

Here are the general criteria required for the VA:

  • You must be a Veteran who served at least 90 days of active duty during wartime, or
  • You must be a Veteran who served at least 181 days of active duty during peacetime, or
  • You must be a current active-duty member with more than 90 days of continuous service, or
  • You must be discharged due to a service-related injury, or
  • You must be reservist or member of the National Guard who served at least six years, or
  • You must be surviving spouse of a veteran who was killed during service or because of a service-related injury or who was declared MIA or POW.

Nickel City Funding in Orchard Park, NY supports qualifying service members and their family secure a home using the VA Loan program. Contact our friendly team today with any questions!