A VA loan is a great benefit to military personnel during and after their service. PrimeLending understands the importance of a “home base” for military and their families and is proud to be able to help active and retired military use this product to meet their unique needs.
What are the Benefits of a VA loan?
VA loans are partly guaranteed (typically a quarter of the loan value) by the U.S. Department of Veterans Affairs and offer the following benefits:
- No down payment
- Higher loan value
- No private mortgage insurance
- Limit on closing costs
- Option for seller to pay closing costs
- No penalty fee for early payoffs
- Possible VA assistance if you have difficulty with payments
Who is eligible to Receive a VA loan?
VA loan eligibility depends on certain criteria. To obtain a VA home loan, an applicant must first obtain a Certificate of Eligibility (COE)(link opens in a new tab).
Qualified applicants are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard and Reserve and U.S. Military academies. They must also meet certain eligibility requirements.
Learn more about COE eligibility requirements here:
|Chart 1: COE eligibility requirements|
|Qualifying Event||Active Duty||Veteran|
|Any||Gulf War||24-month rule||Post-Vietnam||Vietnam|
|Active Duty Dates||Any||8/2/1990 – Present||9/8/1980 - 8/1/1990*||5/8/1975 - 9/7/1980**||8/5/1964 - 5/7/1975***|
|Post-Korea||Korean War||Post-WWII||WWII||Nat. Guard & Res. (Gulf War)|
|Active Duty Dates||2/1/1955 - 8/4/1964||6/27/1950 - 1/31/1955||7/26/1947 - 6/26/1950||9/16/1940 - 7/25/1947||8/2/1990 – Present|
|Active Duty Service||181 cont. days||90 total days||181 cont. days||90 total days||90 days active service|
|Spouse of a veteran|
|National Guard and Reserve|
|*Officer start date: 10/17/1981 **Officer end date: 10/16/1981 *** Start date for service in the Republic of Vietnam: 2/28/1961****A surviving spouse remarried before 12/6/03 and reaching age 57, must have applied by 12/15/04 for eligibility.|
Upon receiving a Certificate of Eligibility, an applicant can apply to use the guaranty on these financing and refinancing opportunities:
- Purchase or build a residence
- Purchase a condominium or duplex
- Purchase and improve a residence
- Purchase a manufactured home/lot
- Refinance an existing home loan
- Install energy improvements
Veterans Home Loans
Like conventional loans or government-issued loans, VA loans come in different varieties. Choosing the right one for you can be a difficult process, but PrimeLending is here to help you find the one that fits your needs. Get started by reading this list of VA loans and how they work.
VA Fixed-Rate Home Loans
A 30-year fixed-rate option gives you a stable, predictable monthly payment. These loans are great for people settling down in one house over a long period of time. They give deployed soldiers a warm place to come home.
A 15-year fixed-rate option could help current service members who would like to build equity more quickly. You pay more monthly, but this pace builds more equity in your home.
VA Adjustable-Rate Mortgages
The flexibility of a five-year adjustable-rate mortgage can be appealing to current military service members expecting to move in the next few years. ARM homeowners pay a low introductory interest rate for the first few years, then move or refinance before it adjusts upward.
VA Jumbo Home Loan
The VA will guarantee a maximum of 25% on your home loan.
Cash-Out Refinance Loans
A cash-out refinance helps you handle big-ticket items — college, health expenses or debt, for example. Effectively, you pay off the remaining balance and take out a new loan for the appraised value of the house. Much of the difference goes into your pocket as cash.
Interest Rate Reduction Refinance Loan (IRRRL)
An Interest Rate Reduction Refinance Loan (IRRRL) helps service members refinance at a lower interest rate. Refinancing can help lower your monthly payment, change your term or turn an ARM into a fixed rate. Other advantages include:
- No Income and/or asset verification
- No out-of-pocket expenses
- Rolling all costs into the new loan