For those who are eligible, VA loans can be the perfect solution to achieving homeownership. Here is a quick rundown of what they are and who may qualify.

 

What They Are

A VA loan is a mortgage made by private lenders, like us, but they are backed by the Department of Veterans Affairs. There isn’t a limit on how much you can borrow, but there are limits on how much the loan will guarantee.

 

VA loans consistently offer lower rates than traditional bank financing, according to Ellie Mae (the software company that processes U.S. mortgage applications). It’s important to understand that eligible borrowers may only use VA loans for their primary residence; you can’t finance an investment property or vacation home with a VA loan.

 

One of the main advantages of VA mortgages are that they are easier to get financing because they offer no down payment loans and are more lenient with credit and income requirements.

 

VA Eligibility Requirements

Members of the regular military, veterans, reservists, and National Guard are eligible to apply for a VA loan. Spouses of military members who died while on active duty may also apply.

 

Active-duty military members typically qualify after about six months of service. Reservists and members of the National Guard have to wait six years to apply. However, if they are called to active duty before that, they gain eligibility after 181 days of service.

 

You may qualify if you:

  • Served 90 consecutive days of active service during wartime
  • Served 181 days of active service during peacetime
  • Have been an active member of the National Guard or Reserves for 6+ years
  • Are married to a service member who passed in the line of duty

 

If you have questions about VA loans or would like to apply for one yourself, please reach out!