VA Home Loans

VA LOAN GUIDELINES
Are you Eligible for a VA Home Loan?

Before you sign on the dotted line of your VA home loan mortgage contract, the VA wants to be sure you're fully apprised of all the financial responsibilities of home ownership. If this is your first home purchase, there may be elements of that responsibility you're not familiar with. To start out with confidence in your ability to manage what you take on, the VA asks for your debt-to-income ratio.

To qualify for a VA home loan, the maximum debt-to-income ratio 41%. If you find that you exceed 41%, the VA residual income guideline may still allow approval for your VA home loan.

VA LOAN LIMITS

Before you ask for the loan, many smart veterans ask if there are VA Home Loan lending limits. The answer is yes...but those limits are being increased all the time and vary from state to state.

VA CLOSING COSTS

There's a lot more to closing your real estate deal than signing on the dotted line. In addition to the price of the home, there is the price of the deal. These are often called the "closing costs" of your transaction and they cover many things.

VA CREDIT ISSUES

You are a veteran ready to purchase a home, but you have pre-existing credit issues...can you get a VA mortgage? Your chances are good. When it comes to a VA Home Loan, your approved mortgage lender will make every effort to get you covered.

VA FUNDING FEE

The VA loan funding fee, required by law, is currently 2.15% percent on a no down payment VA Home loan. For second-time users, the Funding Fee is 3.3% for no-downpayment home loans. The higher fee for second-time use is because second time users have had time and opportunity, through the first use of their VA Home Loan benefit, to accumulate equity or save money towards a down payment.

MORTGAGE HELP

The Veterans' Benefits Improvement Act offers assistance to veterans with subprime mortgages, helping them refinance into a safer, more affordable VA guaranteed loan; and it provides loan counselors at the VA whose goal is to work closely with veterans and substantially reduce the number of veterans defaulting on home loans.