VA Loans
A VA loan is a mortgage backed by the Department of Veterans Affairs (VA) available to veterans, service members, and surviving spouses. VA loans are financed by private lenders, even though the VA guarantees a portion of the loan. These loans are known for their competitive rates and terms that you won’t get anywhere else. Similar to other home loans, VA loans can be used to purchase single-family homes, condominiums, manufactured homes, new construction, and more.
Mortgage of Idaho offers funding for VA loans because we believe in taking care of those who have served us. Those who qualify for VA loans can meet with our team to go over essential paperwork to help you get the best rate possible. Often, VA loans come with competitive interest rates and require 0% down, which is considerably lower than traditional loans. The mortgage professionals at Mortgage of Idaho can help individuals, families, and veterans get their dream home.
How To Qualify For A VA Loan
All veterans and service members need to meet the requirements for a VA loan before it will be granted. Generally, a VA loan will be awarded if you served 90 consecutive days on active duty (wartime), 181 consecutive days on active duty (peacetime), 6 years in the Guard or Reserve, or 90 days under Title 32 orders (30 days consecutively).
Working with a professional lender will help you obtain the proper Certificate of Eligibility and help guide you through the rest of the loan process. Veterans or their spouses will also need to meet credit score and debt-to-income ratio requirements as well.
Types Of VA Loans
Mortgage of Idaho can help you find the best loan type for your needs. Even if you know you qualify for a VA loan, other types provide a number of benefits to veterans, service members, and their spouses. Learn more about the different types of VA loans below.
VA Purchase Loan
Veterans and service members can utilize a purchase loan on new builds or existing homes and have $0 down. Not all VA purchase loans will allow you to purchase a certain type of home, so if you want to purchase a condominium or duplex, make sure your lender can secure this loan for you.
VA IRRRL
The VA Interest Rate Reduction Refinance Loan is a refinance option that Veterans can choose. Also known as streamlines, VA IRRRL may not require credit underwriting, income verification, or an appraisal. These are only available if you already have a current VA loan, because it helps you reduce monthly payments and recoup some of the costs and fees that come with your home.
VA Cash-Out Refinance
Another refinancing option is the VA cash-out refinance, which will allow veterans to refinance their home by taking cash out from their home’s equity. Whether you have a VA home loan or not, you can typically qualify for a cash-out refinance.
VA Renovation Loan
Renovation loans or rehab loans will help you purchase a home that needs extensive renovation or refinance a home while receiving compensation for the repairs and upgrades. Renovation loans will combine the costs of purchasing and completing renovations into one loan. Finding a lender that provides VA renovation loans is the trickiest part of home mortgages.
VA Energy Efficient Mortgage
If you want to add energy-efficient upgrades to your home, a VA energy-efficient mortgage can help pay for these upgrades up to $6,000. Qualified improvements can include thermal windows, solar heating, or heat pumps. You will not be able to use this money for appliances, window AC units, or non-permanent additions.
Native American Direct Loan
The Native American Direct Loan helps Native American Veterans and their families buy or refinance a home on federal trust land. Veterans who are Native American or who have a Native American spouse can qualify for this loan directly through the VA.
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Working With Our Experts
Mortgage of Idaho is the expert for all conventional and unconventional loans. Our lenders and mortgage experts can help you understand your financial standing, what loans you qualify for, and the lowest interest rates possible. Whether you are a Veteran, service member, or a typical home buyer, we can help guide you through the mortgage process. Work with Mortgage of Idaho and see just how easy home buying can be.
Frequently Asked Questions
What Are VA Loan Limits?
Limits are put in place to determine how much Veterans with diminished VA loans can borrow before needing to make a down payment. Those with full entitlement can borrow whatever they can afford, while with an active VA loan, some of their entitlement won’t be accessible. Lenders will calculate what you are eligible for and when you need to make a down payment.
Are VA Loans Risky?
There is a long-standing myth that VA loans with no down payments are risky. However, the reality is that VA loans are the safest on the market. VA loans have a unique underwriting requirement that offers a clearer picture of a Veteran’s finances, and whether you will have trouble borrowing from a bank or lender. VA loans help keep veterans in their homes and avoid foreclosure.