Looking for a VA Home Loan Mortgage Lender? Commonfund Mortgage can help! Our VA home loans provide service members including Reserve and National Guard, Veterans and eligible surviving spouses with a zero down payment home loan program. Because the U.S. Department of Veteran Affairs guarantees a portion of the loan, it allows Commonfund Mortgage to offer Military Service Members lower closing cost and interest rates versus other home loan programs. Send us an email, or give us a call to learn more and apply!
VA Home Loans Offered:
- Purchase loans
- Interest Rate Reduction Refinance Loans or IRRRL
- Cash-Out Refinance Loans
Purchase and cash out refinance are available for owner occupied properties only. IRRRLs are available on owner occupied and investment properties that are secured by a VA mortgage.
VA Home Loan Requirements:
- When purchasing a home it must be owner-occupied
- Service member must have been discharged under conditions other than dishonorable and must have a valid Certificate of Eligibility (COE)
- Surviving spouses of a veterans are also eligible under certain conditions
- If a veteran has used their entitlement to purchase a previous home that entitlement must be restored to purchase another home. The property can be sold and the loan paid in full or the loan can be assumed by a qualified veteran
- Credit must be acceptable with a mortgage credit score above 580
- VA Home Loans are assumable which allows a qualified buyer to take over the mortgage held by the current lender with little or no change to the rate and term. If a non-veteran assumes the VA mortgage the veteran’s eligibility would not be restored.
- Seller concessions are allowed and can result in the veteran buying a home with little money out of pocket
- You can have more than 1 VA mortgage simultaneously
VA Home Loan Funding Fee
Most veterans will finance a funding fee into their mortgage amount. The funding fee is a percentage of the loan amount and is required because the loan has zero down payment and no monthly mortgage insurance.
The veteran does not pay this fee if:
- They receive compensation for a military connected disability
- They are a surviving spouse who died in service or from a service related disability
VA Loan Benefits – Why Would I Want A VA Mortgage?
1. No Down Payment.
Saving for your home and building credit can be tough for any homeowner. It can be especially challenging for service members who are always on the move. With a VA Home Loan, qualified borrows can get 100 percent if their home financed without a single dollar down. No down payment!
2. Competitive Loan Interest Rates
Because a VA Loan is backed by the VA, it carries less risk. This means that lenders can typically offer you a reduced interest rate versus conventional mortgages (typically .5 to 1 percent lower). Combining this with the fact that you have no down payment makes VA Home Loans a significant form of savings for homebuyers.
3. No Private Mortgage Insurance
Borrowers for conventional mortgages are often required to pay monthly mortgage insurance when they are unable to put down over 20 percent. Private Mortgage Insurance protects the lenders from a borrower default. With a VA Home Loan, there is no private mortgage insurance – federal government takes on the risk for the borrower.