Key Features Of The VA Home Loan
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To utilize the VA home loan program, you’ll need to first establish eligibility, or prove that you have earned the benefit. To do so, you’ll need to obtain your Certificate of Eligibility or COE. Aligned Mortgage can help you get your COE during the preapproval process. In the meantime, below is some detailed information on who generally qualifies for the program.
If you served in the Army, Navy, Air Force, Marine Corps or Coast Guard, you are eligible if you meet the minimum service days detailed below.
Selected Reserves or National Guard qualifications require 6 years of active membership and honorable discharge, placement on the retired list, transfer to other honorable service or continuation in Selective Reserves.
Other individuals who may qualify are those discharged for a service-connected disability, the un-remarried spouse of a veteran who died in service or from a service-connected disability or the spouse of a Prisoner of War or someone Missing in Action.
As of January 1st, 2020 the VA has changed its Loan limit to NO LIMIT!
With full entitlement intact, Lenders will have different requirements on their loan limits based on your FICO score. Aligned Mortgage, our minimum credit score is just 640 if your loan amount is below the county loan limit. Anything over that is on a case by case basis.
Hawaii Loan Limit
Texas Loan Limit
California Loan Limit
Loan Approval is that of the sales price or appraised value whichever is less if the full Certificate of Eligibility is intact.
The VA Funding Fee is generally paid by all home buyers using the VA Home Loan Guaranty and it goes directly to the VA to help sustain the program. Factors that impact your Funding Fee include branch of service, down payment amount, number of times used, and disability status.
VA Funding Fee Breakdown
Veterans and active military buyers receiving compensation for a service-connected disability and deemed more than 10% disabled by the VA are exempt from paying the Funding Fee.
Some lenders charge additional lender fees, assessed and collected by the lender during your loan process. Those fees can include application, origination, processing and underwriting charges. Aligned Mortgage does not charge those on VA home loans.
A down payment is not required on VA home loans, but the borrower does have to pay for closing costs. VA loan closing costs average 1-3% of the loan amount. Sometimes the buyer can receive seller or lender credits to cover closing costs. For instance, there is typically has a rate option that will allow the lender to cover your closing costs.
Rolling Closing Costs into Your Loan : An Example Scenario
You may have an option to pay points or fractions of a point to buy down your rate, pay zero points at a higher rate, or take a higher rate with rebate pricing that allows the lender to provide lender credits to cover closing costs. The below rate chart provides an example.
*Please note this is for example only and is not a current reflection of market rates.
Get our Free VA Mortgage Guide, your road map to getting VA loan financing for your dream home.
Please complete the form below to receive your VA Mortgage Guide.
Information Provided in the VA Mortgage Guide
- About VA Home Loans
- Benefits of VA Loans
- Obtaining a Certificate of Eligibility
- VA Funding Fees
- VA Loan Closing Costs
- Myths Regarding VA Loans
- VA Loan Pre-Approval Checklist
- Step by Step Overview
Please visit our Disclosures page for more details for all loan types.