VA Mortgage Loans

VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces because there is no down payment needed and no private monthly mortgage insurance required.  A VA home loan can be used to purchase a home or refinance an existing mortgage.

VA does not actually lend the money to you directly. They offer a guaranty to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance. The word GUARANTY does not actually guaranty the veteran will qualify for a VA home loan.

Financing Options Available

• 30-year fixed
• 15-year fixed
• 1 Year ARM
• 3 Year ARM.

Occupancy requirements

• Owner-occupied primary residences only

Maximum loan amount

• $417,000 for $0 down (this includes the VA funding fee)
• Loans are available for over $417,000 but a down payment is required

Eligible properties

• 1-4 unit attached, detached, condos, or PUDs

Underwriting summary

• Single ratio 41% based upon gross income.
  • A residual income is required for VA loans.  The required amount differs with family size.
  • No unmarried co-signers.  Borrowers must be married (common law marriages are not accepted) or both borrowers must be veterans
• Notes are assumable.
• Cannot use rental income to qualify for 2-4 unit properties

Subordinate financing

• Not allowed

Funding Fee Chart

LTV	Veteran (active & discharged)	Reservist (6 years service in National Guard)
95.01%-100%	2.15%	2.40%
90.01%-95%	1.50%	1.50%
90% and below	1.25%	1.25%
Subsequent Use	1.25% to3.3%	1.5% to 3.3%