vA LOAN

If you qualify for a VA loan, it is possible to get a loan without a down payment. This is due in part because VA loans are backed by a government agency. There is no minimum credit score, however a FICO Score of 620 is preferred.

A key feature of VA loans is the entitlement. A VA loan entitlement is basically the amount of the loan that the VA will guarantee to the lender if you default. There are two types of entitlement: Basic and bonus. 

VA interest rates are typically 0.5 to 1 percent lower than conventional interest rates which helps veterans save money every month over the life of the loan.

VA loans also don’t require private mortgage insurance (PMI), but require a VA funding fee when you close, which will be a percentage of the loan’s total value. This fee helps keep the program running for future borrowers.

To determine your eligibility for a VA loan, you must first obtain a VA Certificate of Eligibility. You can get one by applying through your eBenefits portal online.

You’re currently on active military duty, or you’re a veteran who was honorably discharged and met the minimum service requirements.

You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime.

If your spouse died in the line of duty, you may also qualify for a VA loan.

You must live in the home you’re financing as a primary home — the money cannot be used for an investment property or vacation home.