Buy a Home

VA Loan

 

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 United States Armed Forces, military veterans and their surviving spouses.

A VA loan provides simple and flexible options, whether you’re buying your first home or buying a different home and looking for the best terms and conditions. You may qualify for no down payment and lower-than-average interest rates, along with less restrictive credit requirements.

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What is a VA Mortgage Loan?

When you decide to purchase a home, you will encounter a range of possibilities for financing. Mortgage loans stand apart from each other based on the requirements for applicants and on the terms and conditions of each loan type, including the loan’s length, the interest rate and the minimum down payment.

A VA loan is backed by the federal government through the U.S. Department of Veterans Affairs (commonly known as the VA). Lenders approved by the VA are insured by the U.S. government to cover the risk of a borrower’s inability to pay back the loan.

With this support, lenders are able to offer VA loans with greater flexibility for the borrower than conventional or FHA mortgage loans, including lower minimum credit scores and competitive interest rates. For instance, VA loans allow for no down payment, an especially attractive option for first-time homebuyers. An added feature is that a qualified VA loan holder can apply more than once.

VA benefits are intended to help members of the military services, veterans and eligible spouses in a number of ways, including their housing needs.

How to Obtain a VA Loan

At Compass Mortgage, we would be honored to help you determine if a VA loan is the best solution for you to buy a home. To help you understand the process, we’ve listed key steps and documentation you will need.

The Financing Process

To start with, we suggest to buyers like you that they contact us at Compass Mortgage . . .

  • To request a quote for their interest rate
  • To begin an application for a VA mortgage loan

As you inform us about the purchase you’re considering, we will . . .

  • Discuss your finances with you
  • Obtain your credit report
  • Help you apply for the VA Certificate of Eligibility (CoE)
  • Confirm the value of the home you’re interested in purchasing
  • Arrange for a professional inspection of the home (helping make certain it meets minimum property standards for a VA mortgage)
  • Detail the documents you will need for underwriting your loan

We’re with you through every step, all the way to closing when your purchase will be finalized, and the home will be yours!

VA Loan Requirements

These are some of the common requirements to qualify for a VA mortgage loan. If you have any questions, we’re here to help!

  • Certificate of Eligibility (CoE). Demonstrates your eligibility for VA benefits
  • Credit Score. Requirements vary based on several factors; contact us
  • Debt-to-Income Ratio (DTI). Percentage of your total income used to pay for debt; contact us to find out the parameters
  • Income Information. Proof of ongoing monthly income, including remaining income after major debts and obligations paid
  • VA Funding Fee. Waived only in exceptional circumstances
  • Primary Residence. Home you’re buying must be your primary residence; also must meet VA minimum property standards

VA Loan FAQs

Buying a home represents a significant investment, and borrowing the money to make the purchase typifies a major decision. It’s perfectly acceptable to have questions! We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.

  • VA mortgage loans are different because they’re insured by the U.S. Department of Veterans Affairs, thus avoiding some of the strict requirements for qualification which are especially characteristic of conventional loans.
  • Both VA and FHA loans are backed by the federal government, and both offer competitive interest rates and down payment options along with more possibilities for those who have lower credit scores.
  • VA loans have certain advantages over FHA loans, including no required mortgage insurance, reduced interest rates, lower credit requirements and the potential of no down payment.
  • Eligibility for a VA mortgage loan is based on present or past service with the armed forces of the United States and is verified with a CoE (Certificate of Eligibility) obtainable from the U.S. Department of Veterans Affairs (VA).
  • The VA evaluates eligibility according to military status, years of service and service record.
  • You may be eligible if you are . . .
    • A current, active-duty member of the U.S. Armed Forces OR
    • A veteran of military service OR
    • The spouse of a military service member (including a surviving spouse)
  • Requirements established by the VA which ensure that the home being financed is a good investment for all involved
  • Evaluate a home’s safety, security and soundness to establish if it is safe, structurally sound and sanitary
  • Include mandatory professional home inspection which considers the property on which the home is built, the house itself, any other structures on the property
  • VA Funding Fee
    • One-time cost
    • Varies according to your situation (such as if this is your first VA loan, the amount of your down payment, similar considerations)
    • Typically amounts to between 1.4% and 3.6% of the loan amount
    • Can be paid up front or rolled into your monthly mortgage payment
    • Helps ensure availability of VA mortgage loans for all eligible veterans
    • Can be waived (for Purple Heart recipients, veterans with service-related disabilities, surviving spouses of veterans in certain circumstances)
  • Other closing costs
    • Loan origination fees
    • Appraisal
    • Title insurance
    • Some of these as well as other closing costs can be included in the loan and added to your monthly mortgage payment
  • Seller-paid closing costs
    • VA allows up to 4% of closing costs to be paid by seller of home you are buying
    • Can be option if it helps everyone close the sale of the home
  • As long as you are eligible, you are entitled to VA mortgage benefits. You can use the benefit for your first home, then continue to use it for every home you purchase in the future IF you qualify.
  • It is possible to use one CoE to qualify for up to two (2) VA loans at the same time.
  • Full eligibility is restored after a VA loan is paid off or if the house is sold.

Compass Mortgage stands ready to help VA-eligible
mortgage applicants! Get in touch with us.
We look forward to helping you apply!

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VA LOAN BENEFITS
  • Great for first-time homebuyers
  • Low credit scores accepted
  • Possible 0% down payment
  • Comparably low interest rates
  • Term length options
  • Fixed or adjustable interest rate
  • No monthly mortgage insurance
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