VA Loans

A VA loan is a perfect lending solution for service members, both active and retired. In fact, as long as your paperwork is in order, acquiring a VA loan is simple and easy. Plus, unlike other types of loans, your credit score is not an integral part of qualifying for the loan. Instead, your debt to income ratio is calculated. The largest portion of your debt should be your new VA loan payment.


It isn't difficult to qualify for a VA loan at all. VA loans eliminate the need for a down payment that holds so many prospective homeowners back. Additionally, the purchase contract can be arranged in such a way that closing costs are avoided as well. Moreover, VA loans have a fixed interest rate that is at least as good as the ones attached to conventional mortgages if not better.

A VA loan includes several advantages over conventional loans including the following:

• No down payment
• No closing costs up front if you include them with the loan
• Lower interest rates over other types of loans
• No requirement for private mortgage insurance (PMI)
• Ability to purchase a more expensive house
• Guaranteed assistance if you have difficulty paying the loan

Not only are the options attractive, but also, they can save you money over the course of the loan. The fact that you don't have to put any down payment on the home, purchase PMI, or pay closing costs at the time of the loan acquisition provides flexibility to those individuals without a source of ready cash.

A one-time fee is charged at the beginning of the loan. However, it is included in the loan amount. Therefore, you don't need to worry about coming up with that amount of cash either.

The financial benefits to those who qualify are incentive enough to apply for a VA loan today. In fact, if you are in the market for a home, but haven't quite finalized any deals yet, set up the paperwork for pre-qualification. Once you are pre-qualified, you get a certificate of eligibility. Pre-qualifying for a VA loan proves to the seller that you are serious about purchasing a home. Plus, you will know the price range that you qualify for so that you can narrow down your search to homes within your pre-qualified price range.

A few requirements exist to acquiring a VA loan including the following:

• Must have served 90 days of active duty during wartime
• 181 continuous days of active duty during peacetime
• Any discharge except dishonorable

National guard members and reservists are eligible for VA loans after they have put in 6 years of service. In fact, if you already have a VA loan, you can use your eligibility to qualify for a new loan as long as you have made your payments in a timely fashion and the loan is paid off in full.