VA Loans
VA loans are mortgage loans that are backed by the United States Department of Veteran Affairs (VA). This home loan is available to eligible military veterans and surviving spouses of deceased veterans. They are designed to assist veterans by allowing them to purchase property with no down payment.
VA loans enable veterans to borrow a maximum of 103.15% of either the value of the home or the sales price, whichever is less. If the home loan is being used to refinance, veterans can borrow a maximum of 90% of reasonable value as long as a new VA loan is created. In cases where a veteran refinances a VA loan to a VA loan, they can borrow a maximum of 100.5% of the overall amount of the loan.
VA loans qualify veterans to borrow more money than traditional loans would. For example, a traditional bank will insure loans with a monthly payment of up to 28% of the veterans gross monthly income (GMI) while the VA insures mortgages with a cap of 41% of the GMI.
Prior to receiving a VA loan, one must apply and be approved for a Certificate of Eligibility. This can be done by applying online, applying through a lender or via mail.
VA loans enable veterans to borrow a maximum of 103.15% of either the value of the home or the sales price, whichever is less. If the home loan is being used to refinance, veterans can borrow a maximum of 90% of reasonable value as long as a new VA loan is created. In cases where a veteran refinances a VA loan to a VA loan, they can borrow a maximum of 100.5% of the overall amount of the loan.
VA loans qualify veterans to borrow more money than traditional loans would. For example, a traditional bank will insure loans with a monthly payment of up to 28% of the veterans gross monthly income (GMI) while the VA insures mortgages with a cap of 41% of the GMI.
Prior to receiving a VA loan, one must apply and be approved for a Certificate of Eligibility. This can be done by applying online, applying through a lender or via mail.