Where do VA loans come from you ask? Well the VA loan is an option available to veterans, service members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).
What are VA Home loan benefits?
VA Borrowers have many terms that are not available for normal mortgage loans. They are typically more flexible with your circumstances. Here are some of the benefits:
- VA Loans require NO DOWN PAYMENT up to a $453,100 loan (El Paso County's limit; each county has a limit). With an amount larger than the county limit, a small down payment will be required.
- No monthly PMI payment (Private Mortgage Insurance)
- If you are needing to sell your home, another VA borrower can assume (take over) your existing loan.
- They usually accept lower credit scores than other mortgage loans
- There is no penalty for early pay off
- There is a limit to your closing costs
- The VA will help you negotiate with the lender if you in a funk and unable to make your payments.
Who qualifies for a VA home loan?
National Guard, active military, veterans, and reserves all have different service requirements in order to determine their eligibility. Also, a spouse who is not remarried of a veteran who has passed is eligible for some benefits.More specifically, you need to meet one or more of the following:
- You have served 90 consecutive days of active service during wartime
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
- You have served 181 days of active service during peacetime
- You have more than 6 years of service in the National Guard or Reserve.
Contact Nuvill today to get in contact with our preferred VA Lenders. Nuvill is also a Homes for Heroes®️ affiliate, which helps military members and veterans save money on purchasing/selling a home.
What if I have used a VA Loan before?
Every person's situation is different, though usually if you have paid off your first or other VA loan then you are eligible again. If you are in use of your benefits, you also may have some unused ones still available.
How do I make sure I find a good VA Lender?
Everybody's situation is different and each situation can bring different circumstances when it comes to your loan. Local lenders in Colorado Springs could have more flexibility and help prevent the delay in the purchase of your home. We have multiple preferred lenders and make sure to refer you to one that fits best.
What happens next after I prequalify for a VA Loan?
You will prequalify, then comes an accepted contract, then your lender and real estate agent will guide you through the process.
Usually with mortgage loans there are Origination Fees. Are there Origination Fees with VA Lenders?
Yes, there still is, though they cannot charge more than 1% of the loan amount, or a flat fee not exceeding 1%.
What is a Certificate of Eligibility?
This is a certificate that the VA Lender requires to serve as proof as their service, and that you meet the minimal requirement for a VA home loan.
Does my Certificate of Eligibility guarantee that I will qualify for a VA Loan?
Not necessarily. With your certificate of eligibility, then comes talking to a VA lender in determining what you can prequalify for. Your credit, financials, and own personal situation will determine how much you will be able to qualify for. Having good credit is a necessity for any home loan, and if your credit is not ready, your VA Lender should provide you with a plan on how you can improve your credit score in the fastest and most efficient way possible.
How long does it take to get my Certificate of Eligibility?
Depending on your eligibility scenario, it could possibly take up to 4-6 weeks. But most people who are looking to purchase a home sooner rather than later can get theirs in a matter of seconds or a couple days.
Where can I obtain my Certificate of Eligibility?
- Active Duty – A statement of service signed by the adjutant, personnel office or commander of the unit. There’s no particular form for this, but it must be printed on military letterhead.
- Reserve and Guard (honorably discharged) – NGB Form 22, Separation and Record of Service or an annual retirement points summary.
- Veterans – DD Form 214, Certification of Release or Discharge from Active Duty.
Is there a minimum credit score for a VA Loan?
Each VA Lender has a different credit score benchmark they have to implement. Though VA Home loans are more lenient, they still usually require at least a 620. Some may be able to work with a 580 or above.
Can I use my VA loan to build a house?
Yes, in most cases you are able to utilize a VA loan if you want to build a home on a piece of land. Qualified borrowers can use it towards a new construction mortgage.
We can answer all of your other questions if you want to simply call Nuvill or fill out our contact form on our contact page and we will get in touch as soon as possible!