Veteran Education

How a VA mortgage works

The VA Mortgage Basics

VA loans are a major benefit provided to (qualifying) current members of the military and military service veterans. If you qualify, you can buy/build a home, refinance a current mortgage or even buy a second home. There are options for VA loans with as little as 0% down! These loans require no Private Mortgage Insurance (PMI), with rates unmatched by civilian mortgage programs.

More VA Mortgage Detail

Most service members and veterans who do qualify, consider access to the VA Mortgage program one of their most valuable benefits! These loans are backed by the Department of Veterans Affairs but issued by private lenders. And, have been issued to over 20 million service members in the last 75+ years! Notably, in 2020, the program has expanded the limit on a VA loan significantly. The amount that you can qualify for depends on a number of different factors, but the biggest is debt to income ratio, which determines the monthly payment that an individual can afford. This ratio is calculated by dividing specific debt obligations by an applicant monthly income.

VA Mortgage Funding Fee

Almost all VA loans require a VA funding fee. The fee goes directly to the Department of Veterans Affairs, which in turn helps to back future loans from the program. A reprieve of this fee is extended to service members that have a service-related disability. The fee ranges from about *% up to *.*% for repeat home buyers. That said, the service individual does not have to come out of pocket for this fee, it can be rolled into the loan, along with closing costs if the individual so desires.

All of this might sound daunting, but we here at the VA Mortgage Expert are ready to help. Sign up to speak with one of our knowledgeable team members and we will walk you though the process…