A VALoan can allow you to obtain a home loan at with no money down, help you save money each month by not having to pay mortgage insurance and provide you with a better mortgage rate due to its easy qualification requirements.
Get the help you need in order to move through the process in a smooth manner and ensure you maximize your benefits.
Fill out the VA application or contact a BankPacific VALoan expert today! We will help you find out how much money you can save on a VALoan, how to get pre-approved, and can provide you with free advice and assistance regarding your VALoan.
Who Qualifies for a VA Loan?
There are several different standards for qualification of a VA loan. If you are not sure that you qualify, you should speak with a mortgage broker or VA loan professional or read more about VA loan qualifying here. One of the first step towards getting a VA loan is filling out a Certificate of Eligibility.
Basic qualification criteria for obtaining a VA Loan:
- Active duty veterans discharged during WWII and later periods, without the status of “dishonorable.”
- Active duty veterans who served at least 90 consecutive days during major conflict.
- Peacetime veterans and active duty personnel who have served more than 180 days of consecutive service.
- Enlisted veterans whose service began after 1980 or officers whose service began after 1981 who have served two years.
- National Guard members and Selected Reserve members may also qualify. Check your eligibility through a BankPacific myVALoan specialist if you have any questions.
What Can I Use a VA Loan For?
You can use your VA loan to purchase a house, condominium, or townhouse. You can also build a home or purchase a home and make improvements with your VA loan. Refinancing of a mortgage can be done with a VA loan, as well as improving your home with energy-related features.
Why Would I Want a VA Loan?
There are several reasons why a VA loan may be preferable to a standard loan. Most importantly, if you qualify, you may obtain a VA loan even if other loans were unobtainable. There also may be no down payment required for a VA loan, depending on the lender. VA loans also tend to have lower interest rates than conventional loans, and you can often negotiate the interest rate with the lender. There are no mortgage insurance premiums on VA loans, and they do allow for an assumable mortgage. Closing costs for purchasing a home can be lower than other forms of financing, and prepaying your mortgage holds no penalty, as in some other forms of loans. In addition, VA assistance is available to those who qualify if temporary financial difficulty occurs.
How Much Money Can I Borrow?
The VA does not put a cap on how much money you can borrow. This determination is up to the bank. The basic entitlement of a VA loan is $36,000, but some loans are eligible for $60,000 if they are over $144,000. A lender will often loan up to four times the amount of the basic entitlement without any requirement of a down payment.
Although there is no set maximum limit the VA allows you to borrow with your entitlement, most lenders will not approve a total of over $417,000. Lenders typically sell VA loans in a secondary market, where the cap for a loan limit is $417,000.
Veterans who have already taken out a VA house loan in the past may still be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, this means that many people who took out VA loans in the past may be eligible for more money now than they were entitled to before. Contact a BankPacific myVALoan expert to see if you qualify.
VA Loan History
The VA home loan guaranty program was formed in 1944 to aid veterans returning from war. The overall objective of VA home loan benefits was to minimize possible economic and sociological problems experienced by post war readjustments of the men and women serving in the United States Armed Forces. This basically means that veterans’ are given a leg up through the Veteran’s Administration towards purchasing or refinancing a home in gratitude for the sacrifices they made by serving our country.
Print out and apply at your nearest BankPacific location.
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