As part of your military service benefits, the Department of Veterans Affairs provides specialized assistance to help individuals with military backgrounds purchase a home with a minimal or zero down payment. VA Loans offer adaptable options in the form of Fixed Rate or Adjustable Rate mortgages.

With VA loans, buyers have the opportunity to finance the entire purchase price of the home, eliminating the need for a down payment. However, it is essential for buyers to meet the loan qualifications, including a review of their credit history and financial capability to make mortgage payments. In some cases, lenders may require applicants to reduce debt or build up savings before approving the loan.

Buyers should also consider potential closing costs, such as title recording fees or legal expenses for document preparation. These costs can be negotiated with the seller and discussed with a real estate agent before submitting an offer on a property.

The VA Loan process

The process for a VA loan is similar to that of most home purchases, involving a buyer submitting a written offer to purchase a home with specific conditions (such as price, closing cost assistance, and other contingencies) and then undergoing an approval procedure with a lender. The distinctive feature of a VA loan is that the Department of Veterans Affairs mandates that all homes acquired through this program meet specific habitability standards. To ensure compliance, a home inspector and appraiser will assess the property’s condition and value.

This inspection phase can lead to delays, particularly if repairs are necessary following the inspector’s evaluation. Any issues identified do not necessarily disqualify the buyer from using the VA loan; they simply indicate that repairs must be completed before finalizing the home purchase. The VA has recently introduced a limited option for VA loans to be used for homes requiring renovation.

How VA Loans Work

• Purchase your home with as little as 0% down payment.
• 30-, 25-, 20- and 15-year terms are all available with fixed rates.
• 5-year adjustable rate mortgage available.
• Jumbo VA loans available.
• VA Streamline Refinance with a reduced funding fee and flexible documentation requirements – available for veterans currently in VA loans.
• No monthly PMI (Private Mortgage Insurance).
• VA loans are governed by the U.S. Department of Veterans Affairs.
• Pay your mortgage off at any time without pre-payment penalties.

Have questions?  Give us a call! One of our mortgage specialists would be happy to answer all of your questions.

Luxe Lending, LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.