By: Joanna Melton
Extraco Mortgage wants to help our Veterans, Active Duty Military and Surviving Spouses get the mortgage loan they have earned. As the spouse of a Veteran, I remember having so many VA loan questions when my husband and I wanted to buy our first house. We didn’t know what we were eligible for or even where to start.
Below, I have answered some of the questions I had as a first time home buyer.
What is a VA loan and why is it different?
A VA loan is a mortgage loan that is guaranteed by the Veterans Administration. It is different from a Conventional loan and a FHA loan in several ways. The most significant difference is that a VA loan does not require a down payment or mortgage insurance. This allows a lower monthly payment and a less cash up front.
What are the benefits of a VA loan? How much money down is required for a VA loan?
The biggest benefits are 100% financing and no mortgage insurance is required on a VA loan. 100% financing means no down payment is required.
What is a VA Funding Fee and do I have to pay this upfront?
A VA Funding is financed into your loan amount. For a fist time home buyer this fee is 2.30%. If this is not your first VA loan, that fee is 3.60%. This fee can be reduced making a 5% or 10% down payment.
If you are a Veteran who receives VA compensation for a service-connected disability, you could be exempt from the funding fee requirement. There are also other factors which could allow you to be exempt from the funding fee. Please contact an Extraco Mortgage Consultant for more details.
Can I get a VA loan while serving on active duty?
YES!!! We will just need a signed statement of service. Contact an Extraco Mortgage Consultant for details of what is required on the statement of service.
What's a COE (Certificate of Eligibility) and how do I get one?
A COE is a document which verifies you are eligible for a VA loan. We will help obtain this on your behalf.
Can I buy investment property with a VA loan?
Unfortunately, no. Only a primary residence can be financed by a VA loan. Primary residences can include a house, a multiplex (up to a 4-plex as long as you will reside in 1 unit), a condo, or even new construction.
How many VA loans can you have at one time?
You may use remaining entitlement to purchase your next home as long as it will be your primary residence. Please contact a Mortgage Consultant for more detailed information. We can calculate exactly how much you have available for you.
What is the process to get a VA loan, how long does it take and what documents are required?
A VA loan takes the same amount of time as any other mortgage, usually at least 30 days. Listed below are the most common documents that we will need:
- Current Driver’s license
- Previous 2 years tax returns
- Previous 2 years W2s and/or 1099s
- 30 days paystubs or LES
- DD214 or Statement of Service
Where do I start?
Contact an Extraco Mortgage Consultant today! We will guide you through the process. We make it look easy!