As a benefit of your service, the Department of Veterans Affairs offers unique resources to help those with military experience purchase a home with a low or zero down payment. VA Loans offer flexible options as either Fixed Rate or Adjustable Rate mortgages.

What is a VA loan?

A VA loan is a flexible loan product made especially for both active duty service members and veterans who have housing benefits available to them.  Typically, once you’ve served at least two years in the armed forces, you will have access to a VA loan.  Like other loans, you must income and credit qualify as well as document any funds needed for the closing.

What is required for an VA loan?

With the ability to finance 100% of the purchase price, this reduces the funds needed to verify for the closing.  Like all mortgages, VA loans have closing costs which are not able to be financed into the loan.  The VA doesn’t specify a minimum credit score required for qualification, but most lenders require at least a 580 FICO score and established credit history.  A two-year employment is generally required and all funds for closing must be documented.

VA loans are available for the purchase of a primary residence and allow for several property types including townhomes and manufactured homes.  Condos are more difficult to finance through the VA and require prior approval of the condo association before that property is eligible.   In most cases, only one VA loan is allowed outstanding at a time, but you may be able to “split entitlement” between properties and have more than one VA loan.  The VA is the only loan program that requires a clear pest inspection, sometimes referred to as “WDO” (wood-destroying organisms).  Any repairs required will be determined by a pest inspection and/or appraisal.