Are You Eligible For a $0 Down VA Loan?

If you have served in the military, one of your benefits is the ability to buy a home with $0 down.

When compared to a conventional mortgage, a VA home loan is easier to qualify for and easier to get approved for. Even borrowers with less-than-perfect credit can apply for VA loan.

A VA home loan is guaranteed to amounts over $1 million (even with no down payment).

Before you submit your VA home loan application, you should determine your eligibility. You are eligible for a VA loan if you have served for 181 continous days (or 90 days if you served in the Gulf War) or have been honorably discharged.

Conventional home loans require 3 to 20% down. The VA home loan program offers the ability to buy a home with $0 down! Considering the median home price in America is $222,593, this means an average savings of $44,518.

Most loan programs with less than a down payment will require mortgage insurance. VA Home loans do not have this requirement. In addition to this, VA loans offer interest rates that are lower than conventional mortgages.

A VA loan also protects the borrower by requiring that the home meet VA appraisal and inspection standards.

Another interesting thing to note about VA home loans is that you don’t need to use it to buy an existing home. A VA home loan can also be used both to buy and improve a property, as well as retrofitting your existing home to make it more energy-efficient. For example, if you live inKokomo and you apply for VA loan to install solar cells in your home, you may be able to receive Indiana State, Howard County and federal tax incentives for residential solar energy use in conjunction with your Kokomo VA mortgage.

Depending on the condition and ownership rights, you might also be able to use your VA loan to buy a manufactured home and lot.

Before you apply for a VA loan you should realize that you are not automatically entitled to it. While the VA does not require a minimum credit score before you can receive a VA home loan, private funder/investors will still require you to show an acceptable credit record before they approve your loan application. If you think you might be eligible for a VA home loan, give us a call!

Posted by on Feb 4, 2011 in VA Facts | 1 comment
DISCLAIMER: Neither Indiana VA Mortgages (IndianaVAmortgages.com) nor Luminate Home Loans is affiliated with any government agencies, including the VA.

1 Comment

  1. The 2 Mortgage Guys
    Feb 4, 2011

    It’s pretty important to double check your eligibility status before entering into a real estate contract. We’ve had clients in the past that thought they were eligible but weren’t. If we don’t find this out until two weeks into the process then delaying the closing is hard to avoid.

    http://www.the2mortgageguys.com