Call Now: 702-777-2666

VA LOANS

Learn More About Requirements, Benefits and How to Apply For an VA Loan With Freedom Lending Team

VA LOAN GUIDE

What is a VA Loan?

A VA loan stands as a hallmark of appreciation from the United States to its service members, veterans, and their families, offering an unparalleled opportunity for homeownership. Unlike traditional mortgage products, VA loans are backed by the U.S. Department of Veterans Affairs, providing significant advantages over conventional loans and making the dream of homeownership a reality for many who have served.

How Do VA Loans Work?

VA loans are unique not only because they're backed by the government but also due to the extraordinary benefits they offer, creating pathways to homeownership that many might not have without this support:

No Down Payment Required: The hallmark of the VA loan program is the 0% down payment requirement, which eliminates a major barrier to homeownership for many.

No Private Mortgage Insurance (PMI): This can translate to substantial monthly savings, as PMI can cost between 0.5% to 1% of the entire loan amount annually.

Competitive Interest Rates: Generally, VA loans come with interest rates that are lower than those of conventional loans. This is part of the VA's commitment to provide cost-saving benefits to veterans and service members.

Flexible Credit Requirements: While prospective buyers still need to demonstrate financial responsibility, the credit requirements for a VA loan are less stringent than those for conventional loans, making it a feasible option for those with less-than-perfect credit scores.

The blend of these benefits not only fosters greater accessibility to homeownership but also contributes to the long-term financial well-being of military families.

Who Is Eligible for a VA Loan?

Eligibility for VA loans is broad, encompassing:

-Veterans

-Active-Duty Service Members

-National Guard Members

-Reservists

-Some Surviving Spouses

The specifics of service requirements can vary, such as the length of service or the nature of discharge.

Securing a Certificate of Eligibility (COE) is a critical first step, as it officially verifies your qualification for the VA loan benefit based on your service history.

Our team is prepared to assist you in obtaining your COE, ensuring you can take full advantage of your VA loan benefits.

Applying for a VA Loan with Freedom Lending Team

1. Obtaining a Certificate of Eligibility (COE): This essential document verifies your eligibility.Loan

2. Pre-Approval: This step assesses your finances and gives you a clear idea of your purchasing power.

3. House Hunting: Knowing your budget, you can confidently search for a home that meets your needs and financial capabilities.

4. The Underwriting Process: This involves detailed scrutiny of your financial situation and the property in question, including a VA appraisal.

5. Closing: The final step where the deal is sealed, and the property officially becomes yours.

Our knowledgeable team is here to support you, providing clarity and assistance. Reach out to us at 702-777-2666 for expert guidance.

VA Loan Requirements

Navigating the VA loan process can feel complex, but understanding the specific requirements makes the journey smoother. Here’s what you need to fulfill to take advantage of this beneficial program:

🇺🇸 Service Eligibility: Service members, veterans, and certain spouses must meet specific service durations to qualify. Veterans and active-duty service members typically need a minimum of 90 days during wartime or 181 continuous days during peacetime. National Guard members and Reservists have a requirement of six years. A Certificate of Eligibility (COE) confirms your service meets these standards.

🇺🇸 Credit Score: While the VA itself doesn’t mandate a minimum credit score, most lenders prefer a score of 620 or higher. This requirement ensures you’re in good standing to manage mortgage payments effectively.

🇺🇸 Income and Debt: Lenders will evaluate your debt-to-income ratio (DTI), aiming for a DTI of 41% or lower. This evaluation ensures you have enough income after other debts to comfortably cover monthly mortgage payments. Stable and reliable income is also a must, with lenders requiring proof of sufficient, ongoing earnings.

🇺🇸 Primary Residence: The VA home loan is exclusively for purchasing your primary residence — the home where you plan to live. Buying rental properties or vacation homes with a VA loan is not permitted.

🇺🇸 VA Appraisal: A VA appraisal is compulsory not only to determine the property's market value but also to ensure it meets the VA’s Minimum Property Requirements (MPRs). These MPRs focus on safety, structural integrity, and sanitation, guaranteeing the home is a safe and sound investment.VA

🇺🇸 Funding Fee: Most VA loan borrowers are required to pay a funding fee, a one-time charge that helps to fund the VA loan program itself. The amount varies depending on the loan type, down payment, and whether it’s the first time using the VA loan benefit. Certain individuals, such as veterans receiving disability benefits from the VA, may be exempt.

FAQ SEction

Freedom Lending Team Loan Programs

Find The Right Mortgage Option For You

Conventional

Loans

When it comes to securing a conventional mortgage, trust our team to provide you with expert guidance and competitive rates. Whether you're a seasoned homeowner or a first-time buyer, we'll tailor a conventional loan solution to meet your unique financial needs and homeownership goals.

FHA

Loans

FHA loans offer a fantastic opportunity for individuals looking to purchase a home with more flexible credit requirements and a lower down payment. With an FHA loan, your path to homeownership becomes more accessible, making it an excellent choice for first-time buyers and those with credit challenges.

USDA

Loans

USDA loans, backed by the United States Department of Agriculture, are an excellent option for those seeking to buy a home in rural or suburban areas. These loans come with attractive features, such as no down payment and competitive interest rates. We specialize in USDA loans and are here to assist you in securing your dream home in eligible areas.

Loans

VA loans, backed by the U.S. Department of Veterans Affairs, are a valuable opportunity for veterans, active-duty service members, and eligible spouses to achieve homeownership. With no down payment required and favorable terms, VA loans make buying a home more accessible for those who've served our country.

Jumbo

Loans

Jumbo loans offer a unique financing opportunity for individuals seeking to purchase homes that exceed the limits of conventional mortgages. These specialized loans are designed to accommodate high-value properties, giving you the flexibility and financial support needed for your luxury home purchase.

Mortgage

Refinance

Whether you're looking to lower your monthly payments, secure a better interest rate, or tap into your home's equity for major expenses, our experienced team is here to assist you. We'll work closely with you to understand your unique goals and financial circumstances, tailoring a mortgage refinance solution that aligns with your needs.

VA Loan FAQS

Can I buy any type of property with a VA loan?

VA loans can be used to buy various types of property, including single-family homes, condos approved by the VA, and multi-unit properties, provided the buyer intends to use one of the units as their primary residence. The flexibility in property types allows service members and veterans to find homes that best suit their needs.

Is there a limit to how much I can borrow?

While the VA does not cap the amount you can borrow, there are limits to the amount of liability the VA can assume, which, in turn, affects the amount lenders may be willing to lend without requiring a down payment. It's important to discuss your borrowing limits with a qualified lender to understand how much you can finance through a VA loan.

How does the VA funding fee work?

The VA funding fee is a one-time fee paid to the Department of Veterans Affairs that helps to lower the cost of loans for U.S. taxpayers. The amount of the fee varies depending on various factors, including the type of loan and whether it's the first time using the VA loan benefit. Certain individuals, such as veterans receiving disability compensation, may be exempt from the fee.

Can I use a VA loan to buy land?

Yes, you can use a VA loan to buy land, but there are specific conditions. The land purchase must be part of the construction of a primary residence, and you must have plans to start building on the land right away. Using a VA loan solely to buy land without immediate plans for construction is not permitted. It's essential to work with a lender experienced in VA loans for land purchases and new construction to guide you through the process.

Can I have two VA loans at the same time?

Under certain circumstances, it is possible to have more than one VA loan simultaneously. This situation might occur if you're relocating for work but want to keep your current home and buy a new one in your new location. The key factor is the entitlement: the amount the VA guarantees on your loan. If you haven't used up your full entitlement with your first purchase, you might have enough remaining to use on another loan. However, the second property must also be your primary residence. Detailed rules apply, so discussing your specific situation with a VA-approved lender is crucial.