A Veterans Affairs loan (VA loan) is a government-backed mortgage specially designed for Veterans, service members and surviving spouses, which are made by private lenders, such as mortgage companies and banks, but the Department of Veterans Affairs does not design its own products.
VA home loans have very competitive rates and their terms are quite favorable, as a way to make things easier for Veterans who have given part of their life for the Nation. These loans can be used to purchase a single-family home, condominium, multi-unit property, manufactured house or new construction, depending on the needs of the household and their payment capacity.
How to know if I qualify for a VA home loan?
Applying for a VA home loan is a simple process thanks to the wonder of technology. Not only is the option of applying in person available, but also online, without having to go to an office. If you’re interested into requesting a VA loan, you must meet the eligibility criteria, as established in the official VA website. First, you have to check if you comply with the requirements and, if you do, you’ll need a Certificate of Eligibility from the VA. You can get one after applying online through the portal, by mail, or through a VA-approved lender. The lender will guide through the whole process, and it’s usual that a loans professional stay with you during the whole submission.
Creditworthiness might be checked by the lender. While there is no specific minimum credit score requirement, lenders typically look for a credit score of around 620 or higher. Additionally, the debt-to-income ratio, which compares monthly debt payments to gross monthly income, plays a crucial role in determining eligibility. Proof of income and employment stability are also considered.
How to wisely choose the best VA loan lender?
This is an important step for you and your family’s life. Having said this, the need to obtain the best VA loan is primary. Before making a decision, conduct thorough research on different VA loan lenders. Start by seeking recommendations from trusted sources such as fellow veterans, friends, or family members who have gone through the VA loan process.
Then, compare the interest rates and fees offered by different lenders. Remember that even a small difference in interest rates can have a significant impact on your monthly mortgage payments and overall savings. Check online platforms and review websites to assess customer reviews and ratings of different lenders. You can actually get great feedbacks online and even go into forums where people discuss their experiences.
Finally, before putting your autograph in the contract, review the terms and conditions offered by the lender. Pay attention to details (specially the fine print) such as loan repayment options, prepayment penalties, and any potential hidden fees. It will keep you free from undesired situations or bad surprises.
Some of the most renown VA-approved lenders are:
- Caliber Home Loans
- Freedom Mortgage
- Flagstar Bank
- Guaranteed Rate
- Guild Mortgage
- Lakeview
- LendingTree
- LoanDepot
- Navy Federal Credit Union
- PennyMac
- Penfed Credit Union
- Pentagon Federal Credit Union
- PNC
- PrimeLending
- Quicken Loans
- Rocket Mortgage
- United Shore
- USAA Bank
- Veterans United Home Loans
- Veterans First Mortgage