Why VA Mortgage Programs?A VA Mortgage is a residential home loan created by veterans and is guaranteed by the US Department of Veterans Affairs. This loan is exclusively available to eligible American veterans or for their surviving spouses.
Since 1944, VA Mortgage loans are loans has helped millions of active-duty and ex-military families become homeowners. At Equity One Lending, we take pride in serving those who served our country in our armed forces.
The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.
|Chart 1: COE eligibility requirements|
|Qualifying Event||Active Duty||Veteran|
|Any||Gulf War||24-month rule||Post-Vietnam||Vietnam|
|Active Duty Dates||Any||8/2/1990 – Present||9/8/1980 - 8/1/1990*||5/8/1975 - 9/7/1980**||8/5/1964 - 5/7/1975***|
|Post-Korea||Korean War||Post-WWII||WWII||Nat. Guard & Res. (Gulf War)|
|Active Duty Dates||2/1/1955 - 8/4/1964||6/27/1950 - 1/31/1955||7/26/1947 - 6/26/1950||9/16/1940 - 7/25/1947||8/2/1990 – Present|
|Active Duty Service||181 cont. days||90 total days||181 cont. days||90 total days||90 days active service|
|Spouse of a veteran|
|National Guard and Reserve|
|*Officer start date: 10/17/1981 **Officer end date: 10/16/1981 *** Start date for service in the Republic of Vietnam: 2/28/1961****A surviving spouse remarried before 12/6/03 and reaching age 57, must have applied by 12/15/04 for eligibility.|
Additionally there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personal that have either served 181 days during peacetime, 90 days during war, or a spouse of serviceman either killed or missing in action.
It is very important to know and identify if you are one of those eligible for a VA mortgage. Eligible borrowers should have a Form DD-214, that should specify entitlement. Most National Guard and other active duty members are said to be eligible after their 90 days of service. To obtain a VA home loan, an applicant must obtain a Certificate of Eligibility.
Unlike other loans, VA mortgages do not take a classic approach of calculating borrowing capacity. Their residual income approach to calculating affordability makes the most important requirement the borrower’s ability to repay the loan.
If you are a veteran and VA eligible, Equity One Lending can help you maximize your benefits with a VA mortgage.
Advantages of a VA Mortgage
VA Mortgage require $0 down payment. That is the great advantage of this loan. With a VA mortgage, sellers can pay all closing costs as well. VA mortgages also have no monthly mortgage insurance premiums. This translates into low payments.
One-Time VA Funding Fee
Instead of mortgage insurance, the Veterans Administration charges borrowers a one-time funding fee. Disabled veterans may be waived of this fee. The amount of the funding fee varies, based on down payment.