VA Loans : What are they and how do they work?

If you’re an American active-duty military member, veteran, or surviving spouse of a veteran, you may be eligible for a VA Loans (Veterans Affairs). These types of loans are backed by the U.S. Department of Veterans Affairs and provide cost-effective and accessible financing, in an age where buying a home isn’t always cheap & easy! Here are three of their best benefits:

  1. VA Loans require NO down payment to approved buyers (most homes require a minimum of 3.5-5% down). They offer 100 percent financing to those who qualify, and they don’t require private mortgage insurance (PMI).

  2. Credit Standards are a bit easier. While FHA and Conventional loans typically have a minimum credit score requirement, standards for the VA loan are more relaxed and allow more folks to become homeowners. Generally, most VA lenders require only a 620 minimum credit score.

  3. Competitive Interest Rates. While VA loan rates will fluctuate a bit based on the market and individual buyer, they remain very competitive with other loan programs (such as FHA). In fact, VeteransUnited.com acknowledges that they frequently fall below rates of conventional loans!

  So, you’re thinking about buying a home with a VA loan? Getting started is easy.

First, you’ll want to obtain your Certificate of Eligibility (which you can do here:http://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp). The next step is getting lender approval to get the best sense of your qualifying price range. Lender approval is easy & non-binding. We recommend reaching out to Joe Callahan of First Choice Loan Services at  215 913 8581 or joseph.callahan@fcbmtg.com