VA Home Purchase

The VA Home Purchase Program was developed to assist veterans who have served or who are currently serving in the armed forces to purchase homes. VA home loans are an outstanding benefit to the men and women who have served our great nation. Veterans that qualify can purchase a home with no money down, which makes buying a home extremely affordable. In addition, VA loans also offer very flexible underwriting guidelines, no monthly mortgage insurance, and very competitive financing options.

Why is the VA Purchase So Great?

The VA Home Purchase Program is one of the most attractive purchase loans due to its low cost as well as flexible underwriting process that allows for compensating factors. For example, a high credit score, low debt-to-income ratio, or even assets can help offset negative factors on your application. A VA lender may even consider other types of payment history like rent or utilities when making a decision on approval. This common-sense type of manual underwriting can make the difference when it comes time to get approved for your VA loan. In addition to this not having a down payment requirement, it will save the veteran literally thousands at closing.

What Are the Advantages of a VA Purchase?

No down payment
No mortgage insurance
Credit scores down to 600
No prepayment penalty ever
Up to 50% debt-to-income ratio
A VA loan may also be assumable
Allows for 4% seller-paid closing costs

What Are the Requirements?

Primary residence only
Minimum credit score 600
2-year work history

What About The VA Funding Fee?

The VA funding fee is collected by lenders at closing and is financed into the loan which helps offset the cost to fund the VA program. Its a requirement on all VA loans except when the veteran has had a service-related disability in which case they can be exempt from paying this fee.

The funding fee for first-time use is 2.15% for a veteran of active duty and 2.4% for a National Guard or Reservist
For second or subsequent use the funding fee is 3.3% for a veteran of active duty and 3.3% for a National Guard or Reservist

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