Introduction
Welcome to our comprehensive guide on VA loan lenders. If you’re a veteran, active-duty service member, or surviving spouse, VA loans can be an excellent way to achieve homeownership. VA loans are offered by private lenders but backed by the Department of Veterans Affairs (VA) which can offer you a wide range of benefits and opportunities for homeownership.
In this article, we will provide you with all the information you need to know about VA loan lenders. From what a VA loan is, to how to qualify for one, and which VA loan lenders are the best, we will explore all the major aspects of VA loan lenders in this guide.
What is a VA Loan?
A VA loan is a mortgage loan that is guaranteed by the Department of Veterans Affairs for veterans, active-duty service members, and surviving spouses. The VA loan program was created as a part of the Servicemen’s Readjustment Act of 1944, commonly known as the GI Bill of Rights. VA loans are intended to help military personnel and their families to buy, build, repair or refinance homes.
A VA loan is a popular option for most veterans because it provides several advantages such as no down payment, low-interest rates, and no private mortgage insurance (PMI) required, among others. VA loans are also easier to qualify for compared to conventional loans because they have less stringent credit and income requirements.
How Do You Qualify for a VA Loan?
To qualify for a VA loan, you must meet specific eligibility requirements set by the Department of Veterans Affairs. To be eligible, you must be a:
Eligible Veteran |
Active-Duty Service Member |
Surviving Spouse |
|---|---|---|
Served at least 90 consecutive days of active service during wartime |
Served at least 90 consecutive days of active service during wartime or 181 days during peacetime |
Unremarried spouse of a veteran who died while in service or from a service-connected disability |
Served at least 181 days of continuous active service during peacetime |
Currently on active duty with at least 90 days of service |
Surviving spouse of a service member who died on active duty or from a service-connected disability |
Received an honorable discharge |
Honorable discharge after 90 days of service during wartime or 181 days during peacetime |
Surviving spouse who remarried after the age of 57 and on or after December 16, 2003 |
In addition to meeting the eligibility requirements, you will also need to obtain a Certificate of Eligibility or COE from the Department of Veterans Affairs. The COE verifies that you meet the eligibility requirements and allows you to apply for a VA loan.
Who are the Best VA Loan Lenders?
When it comes to VA loan lenders, there are many options to choose from. Your VA loan can be obtained from private lenders approved by the VA, such as banks, credit unions, and mortgage companies. The best VA loan lenders should offer low VA loan rates, excellent customer service, and quick and easy qualification.
Some of the top VA loan lenders in the US include:
- Quicken Loans: America’s largest mortgage lender that provides excellent customer service and online features.
- USAA: A military-friendly lender that offers VA loans with low rates and no down payment.
- Veterans United Home Loans: A lender that specializes in VA loans with no down payment and low rates.
- Navy Federal Credit Union: A credit union that offers competitive VA loan rates and requires no down payment.
VA Loan Lender FAQs:
1. What is the maximum amount I can borrow with a VA loan?
The maximum amount you can borrow with a VA loan depends on where you are buying a house. In most parts of the country, the VA loan limit for a single-family home is $453,100.
2. Can I use a VA loan to buy a second home?
No, VA loans are intended to be used only for primary residences.
3. Can I get a VA loan with bad credit?
While the VA doesn’t require a specific credit score, most VA lenders require a credit score of at least 620.
4. Can I use a VA loan to refinance my current home?
Yes, you can use a VA loan to refinance an existing home as long as you meet the eligibility requirements.
5. Do I have to pay mortgage insurance with a VA loan?
No, VA loans do not require private mortgage insurance (PMI).
6. Can a non-veteran co-sign for a VA loan?
Yes, a non-veteran can co-sign for a VA loan as long as the primary borrower meets the eligibility requirements.
7. How long does it take to get a VA loan?
The time it takes to get a VA loan varies depending on the lender and their process, but it usually takes about 30 days on average.
8. What are the fees associated with a VA loan?
There is a funding fee associated with VA loans that varies depending on the borrower’s status, loan amount, and down payment. It can range from 0.5% to 3.6% of the loan amount.
9. Can I use a VA loan to buy a condominium?
Yes, as long as the condominium is VA-approved.
10. Can I use a VA loan more than once?
Yes, as long as you have paid off the previous VA loan or sold the home you bought with it and meet the eligibility requirements.
11. Can I use a VA loan to buy a mobile home?
Yes, as long as the mobile home meets the VA’s minimum property requirements.
12. Can I use a VA loan to buy a farm?
No, VA loans cannot be used to buy farms or investment properties.
13. Can I use a VA loan to buy a house outside of the US?
No, VA loans are intended for buying homes in the US or US territories only.
Conclusion
VA loan lenders can be an excellent resource for veterans, active-duty service members, and surviving spouses looking to buy homes or refinance their current ones. In this guide, we’ve covered everything you need to know about VA loans, including how to qualify, which lenders are the best, and frequently asked questions. We hope this guide helps you make informed decisions and take advantage of the VA loan program.
If you have any questions or would like to explore your VA loan options, we encourage you to contact your nearest VA loan lender today.
Closing Disclaimer
The information provided in this article is for informational purposes only and should not be considered legal or financial advice. The VA loan program is subject to change, and eligibility requirements may vary depending on the lender. Please consult with a qualified professional for guidance on your specific situation.