VA Loans are mortgages available through a program established by the United States Department of Veterans Affairs. VA loans assist qualifying active service members, national guard, reserves, veterans and eligible surviving spouses to become homeowners.
VA loans offer up to 100% financing on the value of a home. VA loan recipients do not have to be first-time home buyers, but VA only finances primary residences (no vacation homes or rental properties). Also, they may reuse the VA benefits.
The Benefits of a VA Loan:
- 100% financing on the value of a home below conforming loan limits ($484,350 as of January 1st, 2019)
- Credit doesn’t have to be perfect
- There is no monthly private mortgage insurance
- Closing costs are limited and may be paid by the seller, a family member, or the lender
- VA eligibility may also be used for homes in the Jumbo price range with little money down
Note: Co-Borrowers typically are not allowed unless it is a married spouse, or the co-borrower has their own VA eligibility.