If you or your spouse served in the military, you may be able to get a VA loan. The Department of Veterans Affairs home loans program might just be able to help you purchase a home, even if you have been denied by more conventional lenders or don’t have a huge down payment saved up yet.

Who is eligible?

Most veterans who were honorably discharged and served 24 months of continuous active duty are eligible. Visit the Department of Veteran Affairs Website for details. Even if you are the widow/widower of the qualified veteran, you may still be eligible, if his or her death was service-related or he/she is a POW/MIA.

What is the benefit of a VA loan?

If you are a borrower with no down payment and/or credit that may not be so hot, you can qualify for a VA loan. You do not have to pay private mortgage insurance, and the VA limits closing costs as well as origination and appraisal fees. This means that you will save a lot of money compared to conventional mortgages.

The amount you may borrow is still based on income and credit scores – but the score is based on the past 12 months, rather than several years, as is the norm for civilians. If you have no negative activity for the past year, you are already at an advantage.

For the most part, lenders are more than happy to go this route because the VA insures ¼ of the loan amount in the event of foreclosure. But, that may not even be an issue, as it has been shown that veterans have a lower default rate than other borrowers, according to the Mortgage Bankers Association

Generally, interest rates are lower than conventional mortgage rates. Conventional rates vary greatly based on the size of a down payment. A VA fixed-rate loan may offer a competitive rate with no down payment.

Getting started First, visit the VA web site (listed above) to apply for certificate of eligibility. Then, contact Bill Jenkins 702-845-8540 to get started on your loan qualification. We thank you for your service to our country, and hope to help you move into your dream home!