VA loans are a special type of home financing reserved for men and women who have served the United States directly or indirectly through the military and related organizations. They’re a type of non conventional loan, which means they’re insured by a division of the federal government – in this case, the U.S. Department of Veterans Affairs (the VA). Other than meeting service requirements, VA loans have minimal approval requirements and have other great benefits like 0% down payment requirement. If you’re a veteran, service member, or the surviving spouse of one, this is a great mortgage option to consider. Aaron McDaniel – Cherry Creek Mortgage is your local partner in lending, serving Keller, Denton County, Frisco, and Irving, TX. Contact our team today with questions about VA loans or to get a quote.
The Basics of VA Loans
VA loans are one of several types of non conventional mortgages. Non conventional loans are secured by various divisions of the federal government (VA, FHA, USDA), but funded through other entities. In the case of default, the government promises to repay the lender for most of their losses. Because of this, lenders are more flexible regarding their approval requirements for borrowers.
The VA loan program – officially called the VA Home Loan Guaranty Program – was created in 1944 to help veterans, service members, and certain others who have served gain access to affordable home financing.
Qualifying members of the military and other organizations can use their VA loan benefits to buy homes valued up to $453,100 in Denton, Dallas, and Collin Counties. They can be used to purchase, rehabilitate, or purchase approved homes, condominiums, and manufactured homes.
The Benefits of VA Loans
Today, the program serves the same purpose. Benefits of the VA loan include:
- Easy qualifying, with credit scores as low as 620 accepted
- No down payment requirement
- No mortgage insurance requirement
- Limited Closing Costs
- The Benefit is Reusable
Eligibility for VA Loans
VA loans may only be offered through VA-approved lenders. To be considered eligible for a VA loan, you’ll first need to obtain a certificate of eligibility (COE). COEs simply prove that you have served to your lender and that you’re eligible to receive funding. You’ll need to provide different documentation depending on your service, with your COE application. Our mortgage professionals can help you determine what forms you’ll need.
To determine if you meet the service requirements, we’ll have to look more closely at your record of service. However, the basic list of those who are eligible for these loans include:
- Veterans and service members who have served at least 181 days continuously in wartime and received other than a dishonorable discharge, or
- Veterans and service members who have served at least 90 days continuously in wartime and received other than a dishonorable discharge, or
- National Guard members or Reservists who have served more than 6 years of service, or
- Surviving spouses of veterans killed during service or from a service-related injury
- Members of certain organizations like the Coast Guard Academy and National Oceanic & Atmospheric Administration
Start the Journey to Homeownership
If VA loans have piqued your interest, contact Aaron McDaniel – Cherry Creek Mortgage to start your journey. We know real-estate agents, contractors, and other local colleagues you’ll need during the home buying process. We offer these and all other types of mortgages for people in Keller, Denton County, Frisco, and Irving, TX, and we can help you.