Past and current members of the military may qualify for a special type of mortgage loan, called a VA loan. These are backed by the Department of Veteran Affairs and give members of the armed service the chance to purchase a home without a down payment or an excellent credit history.
Those seeking VA loans should be aware of the eligibility requirements, which can be found on Department of Veteran Affair’s website. Most past and currently active members qualify after 6 months, while National Guard must wait 6 years to apply, unless they are called to active duty for at least 181 days.Family of veterans may be eligible in the event of loss of life of a military serviceperson.
While the credit and down payment requirements may differ slightly according to the mortgage company originating the loan, in most cases applicants are required to pay a 2.15% funding fee for a $0 down payment or a 1.25% funding fee for a 10% down payment. If the veteran is disabled, this fee can be waived.
Another benefit of a VA loan is that the borrower is not required to pay private mortgage insurance, which can cost over $100 in addition to the mortgage each month.
Contact us to see if this option is available for you!