Thinking about getting a VA loan? Have some questions? Odds are the answers can be found in our VA FAQ post.
Are VA loans just for veterans?
No, VA loans are available for not just veterans but active duty personnel with at least 181 days of service, members or veterans of the National Guard and Armed Forces Reserves with at least six years of service as well as unremarried spouses of those who have died as a result of a service related injury.
What are the closing costs for a VA loan?
That will vary based upon the area, the selected lender and other third party charges. Your loan officer can give you a cost estimate over the phone or through an email. However, the veteran is only allowed to pay certain costs and is restricted to only pay for an appraisal, title, origination fees, credit report and recording charges. Lender fees such as processing and underwriting are considered “non-allowable” fees, for example.
How does the VA view credit?
The VA doesn’t require a minimum credit score but most lenders do and this can range from 600 to 620. Lower in certain circumstances yet getting approved for a VA loan is easier compared to a conventional loan with a small down payment.
Do VA loans take a long time?
No, VA loans don’t take any longer than any other type of loan program. In today’s market, a VA approved lender performs all necessary tasks to approve an application. The VA is not involved.
Does the VA guarantee mean I’m automatically approved?
No, the VA guarantee is for the lender. As long as the lender used approved VA guidelines to approve a loan and the loan goes into default, the lender is compensated up to 25% of the loss. However, this is rare as VA loans have the lowest default rate of any other mortgage program.
Can I buy an investment property?
VA loans can only be used to finance the purchase of a primary residence. No rentals, beach houses or vacation homes are allowed.
This is a short list of perhaps the most common questions our loan officers respond to but by no means is it complete. If you’re VA eligible and want to come to the closing table with as little cash as possible, the VA mortgage is hands-down the best choice.