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If you are a veteran or an active-duty service member, one of the many benefits you may be entitled to is the VA (Veterans Affairs) home loan program. VA loans are mortgage loans that are guaranteed by the U.S. Department of Veterans Affairs and are designed to help eligible veterans, active-duty service members, and their surviving spouses buy or refinance a home. This article will cover some of the most relevant information you need to know about VA loans, including what they are, the benefits, who qualifies, and how to apply.
What are VA Loans?
VA loans are home loans that are guaranteed by the U.S. Department of Veterans Affairs. These loans are offered by private lenders, such as banks and mortgage companies, but the VA guarantees a portion of the loan, which allows lenders to offer more favorable terms and conditions to eligible borrowers. VA loans can be used to purchase a home or refinance an existing mortgage.
Benefits of VA Loans
VA loans offer several benefits to borrowers that make them an attractive option for eligible veterans and active-duty service members. Some of these benefits include:
1. No down payment required: One of the most significant advantages of VA loans is that they do not require a down payment. This means that eligible borrowers can purchase a home without having to save up a considerable sum of money for a down payment.
2. Lower interest rates: VA loans typically have lower interest rates than traditional mortgages, which can save borrowers thousands of dollars over the life of their loan.
3. No private mortgage insurance (PMI) required: VA loans do not require borrowers to pay private mortgage insurance (PMI), which is typically required for conventional loans with less than a 20% down payment. This can save borrowers hundreds of dollars each month.
4. More lenient credit requirements: VA loans have more lenient credit requirements than traditional mortgages, which can make it easier for borrowers with less-than-perfect credit to qualify for a loan.
5. Streamlined refinancing: VA loans offer a streamlined refinancing process, which allows borrowers to refinance their existing VA loan quickly and easily with fewer requirements and paperwork.
Who Qualifies for VA Loans?
To be eligible for a VA loan, you must meet certain requirements, including:
1. Military service: You must be a veteran who served on active duty, a member of the National Guard or Reserve, or an active-duty service member. Surviving spouses of veterans may also be eligible for VA loans.
2. Certificate of Eligibility (COE): You must have a valid Certificate of Eligibility (COE) from the VA that verifies your eligibility for the loan.
3. Property requirements: The property you are purchasing must meet certain requirements, including being used as your primary residence and meeting certain safety and habitability standards.
4. Credit and income requirements: You must meet the lender's credit and income requirements to qualify for a VA loan.
How to Apply for a VA Loan
To apply for a VA loan, you will need to obtain your Certificate of Eligibility (COE) from the VA. You can do this online through the VA's eBenefits portal or by submitting a Request for Certificate of Eligibility (VA Form 26-1880) by mail or in person. Then contact your lender to begin your VA loan application. You will need to provide documentation of your military service, income, and credit history. During the homebuying process, your new home will undergo a VA appraisal, which is more stringent than a regular appraisal. This will ensure that the home meets the VA loan standards, and is structurally safe and sound to purchase.
Final Thoughts
In summary, VA loans offer well-deserved advantages for qualifying members. Contact an experienced lender at Streamline who knows how to get the most out of this powerful loan program. With our simple preapproval process, you could be on the path to your VA loan today.
About Streamline Home Loans
We Streamline the Process. From loan products to loan professionals, Streamline Home Loans actively seeks out the best in the industry to help our customers find, and fund, the right mortgage for them. Streamline's model is designed to raise the bar on efficiency, relationships, and integrity. We specialize in product variety, experienced teams, sophisticated software, and quick closings. We currently have multiple locations in NV, with licensing in AZ, CA, CO, FL, GA, NM, SC, and TX. Corporate NMLS# 1810048. Corporate headquarters in Las Vegas, NV.
For more information about Streamline Home Loans, visit us online at streamlinehl.com or call (877) 405-3747.