Buy a Home
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.
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 because of lower down payment requirements, an especially attractive option for first-time homebuyers. An added feature is that a qualified VA loan holder can apply more than once (as long as the mortgage is for a primary residence).
VA benefits are intended to help members of the military services, veterans and eligible spouses in a number of ways, including their housing needs. See below how VA loans differ from other government-sponsored mortgage programs.
| Feature | VA Loan | FHA Loan | USDA Loan |
|---|---|---|---|
| Down Payment | As little as 0% | Minimum: 3.5% | None required |
| PMI |
Not required However, there is a one-time, up-front "VA Funding Fee" charged by the Department of Veterans Affairs to help keep the VA loan program self-sustaining. | Mandatory |
Not required However, there is an up-front, one-time 1% guarantee fee and an annual fee of 0.35% of the loan balance. |
| Credit Score | Flexible | Minimum: 580 | Minimum: 580 |
| DTI | At or below 50% | Flexible | At or below 50% |
| Distinctions | Versatile, accessible financing available ONLY to active members, veterans, surviving spouses of U.S. armed forces | Backed by the federal government | Available through the USDA for purchasing a home in rural areas |
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.
To start with, we suggest to buyers that they contact us at Compass Mortgage . . .
As you inform us about the purchase you’re considering, we will . . .
We’re with you through every step, all the way to closing when your purchase will be finalized, and the home will be yours!
These are some of the common requirements to qualify for a VA mortgage loan. If you have any questions, we’re here to help!
Buying a home represents a significant investment, and borrowing the money to make the purchase epitomizes 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.