VA Loans: No Down Payment and Easy Approval
At Caleb Parmenter – Big Valley Mortgage, one of our greatest honors is to work with servicemembers and veterans who have served our country honorably. VA-guaranteed home loans, often called simply VA loans, are a favorite among these clients. VA loans are a type of nonconventional home loan available only to qualified veterans, servicemembers, surviving spouses of veterans, and certain others who have served the United States. They have amazing benefits, like 0% required down payment, and have minimal eligibility requirements in terms of credit score and financial status. If you’re interested to see if you qualify for a VA loan for purchase, rehabilitation of an existing property, or refinancing in Fresno, Clovis, Madera, or Visalia, contact us. We offer free quotes and can help you compare and contrast this and other home financing so you can save over time and achieve the dream of owning a home.
VA Loan Basics
VA loans are insured through the U.S. Veterans Benefits Administration, a department of the U.S. Department of Veterans Affairs. They’re a type of nonconventional loan because they are backed through the federal government. USDA loans and FHA loans are two other common types of nonconventional loans you may recognize. Though they’re insured through the VA in case of borrower default, VA loans are fully funded through private lenders. Only VA-approved lenders are privileged to finance this type of mortgage.
The VA does not limit the amount that you can borrow with a VA loan. However, it will only guarantee loans up to a certain amount based on where you live. In Fresno, Madera, and Tulare Counties, those limits are:
- $453,100 for a one-unit home
- $580,150 for a two-unit home
- $701,250 for a three-unit home
- $871,450 for a four-unit home
It’s important to note that you absolutely can purchase a home that exceeds these limits using a VA loan, assuming that:
- The private lender funding the loan approves of it; and
- You provide 20% down payment on the difference between the VA limit in your county and the value of your home
VA Loan Benefits
VA loans were developed give veterans, servicemembers and others who have served a path to homeownership. They offer some great benefits, including:
- No required down payment
- No mortgage insurance
- Limits on the amount of closing costs the borrower is required to pay
- Assistance from the Department of Veterans Affairs in the event of payment default
- The ability to reuse the VA loan guaranty once an old VA loan has been paid in full
- Easy credit approval, with no minimum credit score requirement or maximum debt ratio
It is important to note that to secure a VA loan, you are required to submit a one-time fee that supports the VA guarantee program, but this fee can be rolled into the total value of your home loan.
VA Loan Eligible Candidates
To secure a VA loan, you’ll first need to provide a certificate of eligibility (COE), which are distributed by the U.S. Department of Veterans Affairs. Our mortgage professionals can help you fill out the required paperwork and obtain your COE. Most veterans and servicemembers who served at least 90 days during wartime or 180 days during peacetime are eligible for VA loans. Likewise, most members of the National Guard and reservists who have served at least six years are eligible. Other qualified candidates include unmarried spouses of: veterans, servicemembers declared POW or MIA, and veterans who died as a result of service-related injuries. If you’re unsure if you are eligible for a VA-backed mortgage, our team can quickly give you an answer.
You Can Own a Home with the Right Funding Solution
Whether you’re purchasing your first home or your 10th, the team at Caleb Parmenter – Big Valley Mortgage can help. Contact us for a free quote and consultation. We’ve helped hundreds of clients in Fresno, Clovis, Madera, and Visalia secure VA loans for purchase, refinance, and rehabilitation. When you’re ready to get started, we’ll be here for you.