VA Home Loan

Article 1 Section 8 of the United States Constitution calls for Congress to raise and support armies and to provide and maintain a navy.

The United States government created the VA Home Loan as part of the G.I. Bill in 1944 and has helped millions of veterans, active duty military members, and their families purchase or refinance a home.

What is a VA Home Loan?
The VA home loan is a mortgage loan that is guaranteed by the Department of Veterans Affairs (VA) for those who have served or are presently serving in the U.S. military. A Veteran must have served 90 days during wartime, 181 days during peacetime, currently serving for at least 90 days, or serve 6 years in the National Guard or Reserves. It’s important to note that while the VA insures the loans, private banks are still the ones who lend the money, and they have their own guidelines called overlays. Which is why it is important to work with a lender or a broker who underwrites directly to the VA Handbook 26-7.  J. Charles Lending only works with lenders who follow VA guidelines directly.

VA Home Loan Types
There are a number of types of VA home loans available to eligible borrowers:

Purchase Loan
A VA purchase loan is a loan offered by a financial institution or mortgage company. With your Certificate of Eligibility, and your approved credit and income, the lender verifies your eligibility and can issue a Pre-Approval to begin shopping for a home.

There is no down payment required for a VA purchase loan. Additionally, there are generally better terms and interest rates than those of a conventional loan. The VA home loan does not require monthly private mortgage insurance (PMI) premiums, as is the case with a conventional loan when the borrower puts down less than 20%.

The Interest Rate Reduction Refinance Loan (IRRRL)
The Interest Rate Reduction Refinance Loan (IRRRL) allows qualified applicants to refinance their existing mortgage into a new VA loan with a lower interest rate. There is no home appraisal needed, and there is no income or employment verification required. To be eligible for an IRRRL, you must currently have a VA loan that has been open for at least 210 days, and you must also be current on your mortgage payments.  The qualifications for a IRRRL are: the rate must be lowered by at least 0.5%, and the savings from the loan must balance recoup the costs of the loan within 36 months.

Construction Loans
A veteran can purchase a piece of land and take out a loan for the construction of their home. These are more rare and vary by lender but a ground up construction for a veteran is possible.

The Potential Advantages of Obtaining a VA Home Loan
There are many potential advantages to obtaining a VA home loan, including the following:

• No down payment required
• No private mortgage insurance (PMI) required
• Competitive interest rates
• Ability to finance up to 100% of the purchase price
• There is no prepayment penalty

Are You Eligible for a VA Home Loan?
The first step is to obtain a Certificate of Eligibility (COE) from the VA. Once you have obtained a COE, you can then begin the process of applying for a VA home loan.  If you think you might be eligible for a VA home loan, reach out to us today.

When you work with us, you will get a broker that is committed to serving our Veterans to the highest level. We have a team of specialized mortgage loan officers whose knowledge of the VA Home Loan has no equal.

**This company is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.