VA Loans: Empowering Veterans and Service Members to Achieve Homeownership
Serving those who served—Redmond Mortgage helps veterans access VA home loans with no down payment, low rates, and flexible terms. Find out how to qualify today.
What is a VA Loan?
A VA loan is a mortgage option backed by the U.S. Department of Veterans Affairs, designed to assist eligible veterans, active-duty service members, and certain surviving spouses in purchasing, building, or refinancing a home. These loans offer significant benefits, including no down payment, competitive interest rates, and no private mortgage insurance (PMI), making homeownership more accessible for those who have served our country.
Explore your VA loan options
How to Get a VA Loan
Securing a VA loan involves several key steps:
- Determine Eligibility: Confirm your eligibility by obtaining a Certificate of Eligibility (COE) from the VA, which verifies your service history and entitlement.
- Pre-Qualification: Connect with a VA-approved lender to assess your financial situation, credit score, and determine how much you can afford.
- Home Search: Work with a real estate agent to find a property that meets VA guidelines and suits your needs.
- Loan Application: Submit a loan application with your chosen lender, providing necessary documentation such as income verification and credit history.
- Appraisal and Inspection: The VA requires an appraisal to ensure the property’s value and condition meet their standards.
- Underwriting: The lender reviews your application and supporting documents to assess risk and determine loan approval.
- Closing: Once approved, you’ll proceed to closing, where you’ll sign the final documents and take ownership of your new home.
Our team at Redmond Mortgage Company is here to guide you through each step, ensuring a smooth and transparent experience.
VA Loan Requirements
To qualify for a VA loan, borrowers typically need to meet the following criteria:
- Certificate of Eligibility (COE): Demonstrates your entitlement to VA benefits based on your service history.
- Credit Score: While the VA doesn’t set a minimum credit score, most lenders require a score of at least 580.
- Debt-to-Income Ratio (DTI): Lenders generally prefer a DTI of 41% or lower, indicating a manageable level of debt relative to income.
- Stable Income: Proof of consistent income to demonstrate your ability to repay the loan.
- Primary Residence: The property must be your primary residence and meet the VA’s minimum property requirements.
Benefits of VA Loans
- No Down Payment: Qualified borrowers can purchase a home without a down payment, preserving savings for other expenses.
- No Private Mortgage Insurance (PMI): Eliminates the need for monthly PMI payments, reducing overall housing costs.
- Competitive Interest Rates: VA loans often feature lower interest rates compared to conventional loans.
- Limited Closing Costs: The VA limits the amount you can be charged for closing costs, making homeownership more affordable.
- Assumable Loans: VA loans are assumable, meaning they can be transferred to a qualified buyer, which can be a valuable selling point.
- Lifetime Benefit: VA loan benefits can be used multiple times, provided previous loans are paid off or entitlement is restored.
Why Choose Redmond Mortgage Company?
At Redmond Mortgage – we LOVE serving Veterans who served or are serving us with their sacrifice. In addition to fighting for your best interest rate, we will always pay for your appraisal should you allow us the honor of originating your VA loan.
Thank you for serving our country! Let us serve you!
VA Loan FAQs
Financing a home is an important investment. It’s ok to have questions. We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.
All three of these loan types offer flexible financing options. VA loans differ in that they’re insured by the U.S. Department of Veterans Affairs, so lenders don’t need you to meet the strict qualification requirements of a conventional loan. With the stricter qualifications of conventional loans also comes benefits for those with higher credit scores.
FHA loans are also backed by the government and provide options for those with lower credit scores, while offering competitive interest rates and down payment options. However VA loans provide additional benefits that make them one of the best financing programs, including no down payment, no mortgage insurance, low interest rates, and low minimum credit requirements.
Eligibility for VA loans is service-based and proven through a Certificate of Eligibility (CoE) from the U.S. Department of Veterans Affairs. The VA evaluates eligibility based on your service status, your years of service, and your service record.
You may meet eligibility requirements if you are:
• A current active-duty military service member,
• A military veteran, or
• The spouse of a service member, including a surviving spouse
Detailed guidelines are available on the VA’s website. A CoE isn’t required to apply for a VA loan but it will be needed for approval. We can help you apply for your CoE or you can apply for it directly.
The VA has set property requirements to ensure that each house being financed is a good investment for all involved.
The minimum property standards assess a home’s safety, security, and soundness to evaluate whether the house is safe, structurally sound, and sanitary.
A home inspection will be required for this assessment, which considers factors such as the property on which the home sits, the home itself, and any other structures built on the property.
The VA funding fee is a one-time cost that varies based on your situation, such as whether this is your first VA loan and the amount of your down payment. The fee typically ranges from 1.4-3.6% of your loan amount and can be paid upfront or rolled into your monthly mortgage payment. It ensures the program is financially sustainable for all eligible veterans.
The VA also allows for exceptions around paying the funding fee. This includes Purple Heart recipients, veterans with service-related disabilities, and surviving spouses of veterans in certain circumstances.
Along with the VA funding fee there are closing costs, which cover expenses such as loan origination fees, an appraisal, title insurance, etc.
The VA also allows that up to 4% of these costs can be covered by the person selling your new house. This may be an option if it helps everyone close the sale of the house.
As long as you meet the eligibility criteria, you are entitled to VA mortgage benefits. You can use your VA benefits for your first home and continue to use them for each home you purchase in the future, if you continue to qualify. Sometimes this even applies to using one Certificate of Eligibility to qualify for two VA loans at the same time.
Full eligibility is restored after a VA loan is paid off or sold.