A Veteran Affairs (VA) home loan is a great benefit to qualified military personnel during and after their service. Midwest BankCentre understands the importance of homeownership for military members and their families, and we are honored to help qualified national guard, reservist, active and retired military use this product to meet their unique needs. With no money down, no private mortgage insurance, and a competitive rate, VA home loans are a great choice for those who qualify. Let us assist you with your new home loan today.
What is a VA Loan?
The VA Loan Program is a benefit offered by the United States Department of Veterans Affairs that assists active service members and eligible surviving spouses in buying a home. VA Home Loans are issued by private lenders like Midwest BankCentre which are guaranteed in part by the VA. This government-backed mortgage loan allows the private lender to offer more favorable terms.
Who is Eligible for a VA Guaranteed Loan?
VA Purchase Loan or VA Cash Out Refinance loans are available for active duty military, including Army National Guard, reservists, as well as veterans. A VA-backed home loan is available only for service member occupancy or for spouses and/or dependents of an active duty service member.
Borrowers must meet the lender's set of criteria, such as income and credit requirements, but the VA does not have a minimum credit score requirement.
Find full eligibility requirements or request Certificates of Eligibility on the VA website. Ask your loan officer for guidance.
What are the benefits of obtaining a VA Loan?
- No down payment
- Potentially lower interest rate
- Higher loan limit
- No private mortgage insurance
- Limit on closing costs
- Option for seller to pay closing costs
- No penalty fee for early payoffs
- Possible VA assistance if you have difficulty with the monthly payment
- VA home loans are partly guaranteed (typically a quarter of the loan amount ) by the U.S. Department of Veterans Affairs
- VA Home Loan guarantee is a lifetime benefit
Types of VA Mortgage Loans
- VA Purchase Loan - Helps a service member purchase a home for occupancy at a competitive interest rate.
- VA Cash Out Refinance - Allows you to take out home equity in order to pay other debts, fund schooling, or other needs.
- Interest Rate Reduction Refinance Loan (IRRRL) - Reduce the interest rate of a home you currently own by refinancing.
Can I use a VA Loan more than once?
Yes, it is possible to use a VA Loan multiple times, as long as you meet the eligibility requirements. The VA Loan entitlement, which represents the maximum amount the VA guarantees for each borrower, can be restored after the previous loan is paid off and the property is sold. This flexibility allows veterans and eligible borrowers to take advantage of VA Loan benefits throughout their lives, making homeownership more accessible.
A Midwest BankCentre loan officer is standing by to help all eligible veterans navigate all the VA Mortgage Loan options. Contact us today!
