The VA Loan is a home-mortgage

option available to United States

Veterans, Service Members and not

remarried spouses. VA Loans are

issued by qualified lenders and

guaranteed by the U.S. Department

of Veterans Affairs

U.S. Military Veterans and their families may

qualify for a VA Home Loan guaranteed by

the United States Department of Veterans

Affairs.

VA home loans originated in 1944 as part of the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to offer housing and assistance to veterans and their families, making the dream of home ownership a reality for millions of veterans.

VA loans are another option for borrowers

with little free cash but decent credit, provided

they’ve served in the military. You’ll need to

obtain a Certificate of Eligibility through your

lender or the VA Loan Eligibility Center before

you will be able to close your loan, however.

Qualifying for a VA loan is a lot different than

any other loan on the market – the

Department of Veterans Affairs places no

strict limits on the credit eligibility or debt to

income ratios of the borrowers they insure.

Instead, most underwriting items are left to

the discretion of the bank involved.

The Department of Veterans Affairs may not

provide a lot of guidelines on who to loan VA

funds to, but they’re very strict on what fees

can be paid by borrowers and how much they

can pay for things like closing costs. Items

not reimbursed under “itemized fees and

charges” on the HUD-1 form are limited to

one percent of the loan amount in most

cases, and those “itemized fees and charges”

are tightly regulated.

Even though VA loans are an excellent option

for many veterans, there are a few

drawbacks. If you have plenty of cash and

excellent credit, you may be able to find a

better rate with a conventional loan, plus

you’ll avoid the VA funding fee. In addition,

some sellers may be nervous about

accepting a real estate contract with VA

financing attached, especially if they or their

agent believe your loan may take extra time

to close.

What is the New VA Advantage?

Our New VA Loan as many advantages that

make it one of the most appealing paths to

home ownership and this great benefit is

reserved exclusively to those who bravely

served our country and select military

spouses. When combined, the benefits of the

VA mortgage allow service members and

Veterans to take advantage of substantial

cost savings under qualification requirements

designed specifically for members of the

military and their unique needs

What are the VA Primary Home

Purchase Highlights?

•

Min FICO 580, 100% LTV

•

VA Cash Out Refinance

•

Min FICO 580, 90% LTV

•

Min FICO 600, 100% LTV

•

Min FICO 640, 100% LTV

VA IRRRL

•

Min FICO 550, 100% LTV

•

Min FICO 580, 125% LTV

•

Min FICO 640, 125% LTV

Important updates

•

Prior ITIN number to a newly issued SSN

- OK

•

No Credit using non-traditional tradelines

Absence of Credit History For borrower(s)

with no established credit history, base the

determination on the borrower’s payment

record on alternative or nontraditional credit

directly from the borrower or creditor in which

a payment history can be verified. Absence of

a credit history is not generally considered an

adverse factor. It may result when:

•

Borrower has not yet developed a credit

history; o Borrower has routinely used

cash rather than credit; and/or

•

Borrower has not used since some

disruptive credit event, such as

bankruptcy or debt pro-ration through

consumer credit counseling

•

Guidelines for Borrowers having not

established credit

•

12 to 24 month housing payment history,

no late payments; borrowers without

housing payment history will not be

considered for manual underwriting

•

A minimum of three non-traditional credit

sources

•

Maximum payment shock of 100%

•

Limited credit history cannot be used to

overcome poor credit history; RMCR must

be ordered to confirm limited/no credit

What are the VA Home Loan Benefits? • There are many benefits to pursuing a VA home loan as opposed to a traditional mortgage. Primarily, VA home loans: • Do not require a down payment • Have lower interest rates than traditional financing • Are backed by the Department of Veterans Affairs • Do not need private mortgage insurance • Have more flexible loan requirements • Only require limited closing costs • Have no penalty fee if you pay off your home loan early • Allow you to sell your home or refinance without restrictions • Can be used to purchase a home, condo, duplex, and other types of properties • Allow for the funding fee to be financed with the loan (or sometimes waived completely) • Are assumable, meaning they can be transferred to a VA-eligible buyer • Can have a non-spouse family member added for VA joint loans • Cashout up to 90% of the home’s value (100% in some cases) Since VA home loans do not require monthly mortgage insurance (MI) and offer more favorable terms, they are usually more affordable. As such, borrowers are better able to focus on paying off debt and other financial obligations.

MILITARY STATUS

Dont have a DD-214? If you are a military

veteran. Fill out their request form and they

will send a blank "Request Pertaining to

Military Records" Form SF 180.

For your future, all veterans who have been

discharged, separated or retired should keep

multiple copies of your DD-214 discharge

paperwork. It's the most important military

document in your records, for many reasons.

The DD-214 is proof of your military status,

whether you are retired, separated,

discharged. It also displays the nature of your

discharge, and your status with the National

Guard or a Reserve Unit.

Having your DD-214 form can speed your VA

processes to a quick and satisfying

conclusion.

If you are a recently discharged military

member who separated or retired at an

overseas location, remember that your DD-

214 form may be delayed overseas for up to

a year before it becomes part of the National

Record Center archives. If this is the case,

you contact the orderly room, First Sergeant

or Sergeant Major in charge of where you

separated or retired and request a copy

directly from your final base DD-214 Request.