What is a VA Loan?

The VA Loan is a home-mortgage option available to United States Veterans,

Service Members and not remarried spouses. VA Loans are issued by qualified

lenders and guaranteed by the U.S. Department of Veterans Affairs

U.S. Military Veterans and their families may qualify for a VA Home Loan guaranteed by the United

States Department of Veterans Affairs.

VA home loans originated in 1944 as part of the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to offer housing and assistance to veterans and their families, making the dream of home ownership a reality for millions of veterans.

VA loans are another option for borrowers with little free cash but decent credit, provided they’ve

served in the military. You’ll need to obtain a Certificate of Eligibility through your lender or the VA

Loan Eligibility Center before you will be able to close your loan, however. Qualifying for a VA loan

is a lot different than any other loan on the market – the Department of Veterans Affairs places no

strict limits on the credit eligibility or debt to income ratios of the borrowers they insure. Instead,

most underwriting items are left to the discretion of the bank involved.

The Department of Veterans Affairs may not provide a lot of guidelines on who to loan VA funds to,

but they’re very strict on what fees can be paid by borrowers and how much they can pay for things

like closing costs. Items not reimbursed under “itemized fees and charges” on the HUD-1 form are

limited to one percent of the loan amount in most cases, and those “itemized fees and charges” are

tightly regulated.

Even though VA loans are an excellent option for many veterans, there are a few drawbacks. If you

have plenty of cash and excellent credit, you may be able to find a better rate with a conventional

loan, plus you’ll avoid the VA funding fee. In addition, some sellers may be nervous about accepting

a real estate contract with VA financing attached, especially if they or their agent believe your loan

may take extra time to close.

What is the New VA Advantage?

Our New VA Loan as many advantages that make it one of the most appealing paths to home

ownership and this great benefit is reserved exclusively to those who bravely served our country

and select military spouses. When combined, the benefits of the VA mortgage allow service

members and Veterans to take advantage of substantial cost savings under qualification

requirements designed specifically for members of the military and their unique needs

What are the VA Primary Home Purchase Highlights?

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Min FICO 580, 100% LTV

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VA Cash Out Refinance

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Min FICO 580, 90% LTV

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Min FICO 600, 100% LTV

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Min FICO 640, 100% LTV

VA IRRRL

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Min FICO 550, 100% LTV

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Min FICO 580, 125% LTV

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Min FICO 640, 125% LTV

Important updates

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Prior ITIN number to a newly issued SSN - OK

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No Credit using non-traditional tradelines

Absence of Credit History For borrower(s) with no established credit history, base the determination

on the borrower’s payment record on alternative or nontraditional credit directly from the borrower or

creditor in which a payment history can be verified. Absence of a credit history is not generally

considered an adverse factor. It may result when:

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Borrower has not yet developed a credit history; o Borrower has routinely used cash rather than

credit; and/or

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Borrower has not used since some disruptive credit event, such as bankruptcy or debt pro-ration

through consumer credit counseling

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Guidelines for Borrowers having not established credit

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12 to 24 month housing payment history, no late payments; borrowers without housing payment

history will not be considered for manual underwriting

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A minimum of three non-traditional credit sources

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Maximum payment shock of 100%

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Limited credit history cannot be used to overcome poor credit history; RMCR must be ordered to

confirm limited/no credit

What are the VA Home Loan Benefits? • There are many benefits to pursuing a VA home loan as opposed to a traditional mortgage. Primarily, VA home loans: • Do not require a down payment • Have lower interest rates than traditional financing • Are backed by the Department of Veterans Affairs • Do not need private mortgage insurance • Have more flexible loan requirements • Only require limited closing costs • Have no penalty fee if you pay off your home loan early • Allow you to sell your home or refinance without restrictions • Can be used to purchase a home, condo, duplex, and other types of properties • Allow for the funding fee to be financed with the loan (or sometimes waived completely) • Are assumable, meaning they can be transferred to a VA-eligible buyer • Can have a non-spouse family member added for VA joint loans • Cashout up to 90% of the home’s value (100% in some cases) Since VA home loans do not require monthly mortgage insurance (MI) and offer more favorable terms, they are usually more affordable. As such, borrowers are better able to focus on paying off debt and other financial obligations.

MILITARY STATUS

Dont have a DD-214? If you are a military veteran. Fill out their request form and they will send a

blank "Request Pertaining to Military Records" Form SF 180.

For your future, all veterans who have been discharged, separated or retired should keep multiple

copies of your DD-214 discharge paperwork. It's the most important military document in your

records, for many reasons.

The DD-214 is proof of your military status, whether you are retired, separated, discharged. It also

displays the nature of your discharge, and your status with the National Guard or a Reserve Unit.

Having your DD-214 form can speed your VA processes to a quick and satisfying conclusion.

If you are a recently discharged military member who separated or retired at an overseas location,

remember that your DD-214 form may be delayed overseas for up to a year before it becomes part

of the National Record Center archives. If this is the case, you contact the orderly room, First

Sergeant or Sergeant Major in charge of where you separated or retired and request a copy directly

from your final base DD-214 Request.