Because of your service to our country, affording a home is made easier by the benefits of a VA loan. These benefits are available to active-duty members of the military, veterans and their surviving spouses.
A VA loan provides simple and flexible options, whether you’re buying your first home or buying a home and looking for the best terms. You may qualify for no down payment and lower-than-average interest rates, along with a lower minimum credit requirement.
What is a VA Loan?
You have a variety of options when choosing the right loan to buy a home. Loan types differ based on their qualification requirements and the terms they offer, such as the loan’s length, interest rate and minimum down payment amount.
A VA loan is backed by the government through the U.S. Department of Veterans Affairs. VA-approved lenders are insured by the government to cover risks if borrowers can’t pay back these loans.
Backed by the VA, lenders are able to offer VA loans with more flexible qualification requirements than conventional and FHA loans, including lower credit scores and competitive interest rates. These loans allow for no down payment and no mortgage insurance, making VA loans a popular option among first-time homebuyers. (An added feature is that a qualified VA loan holder can apply more than once.)
VA benefits are meant to help servicemembers, veterans and eligible surviving spouses finance the purchase of a home.
Let’s Get Your Loan Started
How to Get a VA Loan
To learn whether a VA loan is the best option for purchasing your home, connect with us at Compass Mortgage. To get you started, we’ve outlined the steps and documentation needed to help you understand the process.
The Financing Process
- Homebuyers often start by . . .
- Requesting a quote for their interest rate
- Beginning a VA loan application with Compass Mortgage
- As you inform us about your possible purchase, we will . . .
- Obtain your credit report
- Help apply for your VA Certificate of Eligibility (CoE)
- Discuss your finances with you
- Assess the value of the home you’re interested in purchasing
- Arrange for a professional inspection of the home (to ensure it makes minimum property standards for a VA loan)
- Determine the loan options and terms available to you
- Detail the documents you will need for underwriting your loan
We’re with you through each step, leading to closing where we’ll finalize your affordable loan when you’re ready to purchase.
VA Requirements to Meet
These are the common requirements often needed to qualify for a VA purchase loan. If you have questions about these requirements, we’re here to help.
- Certificate of Eligibility (CoE). Shows you are eligible for VA benefits.
- Credit Score. Requirements vary based on several factors. In most cases, a credit score of 580 or higher qualifies.
- Debt-to-Income Ratio (DTI). At or below 60%. Shows how much of your monthly income goes to paying debt.
- Income Information. You need to show proof of ongoing monthly income remaining after major debts and obligations are paid.
- VA Funding Fee. You are obligated to pay this fee unless your particular circumstances allow it to be waived.
- Primary Residence. This must be your primary residence, and it must meet the minimum property standards.