A VA loan is a $0-down mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs (VA). Eligible borrowers can use a VA loan to purchase a property as their primary residence or refinance an existing mortgage.
The bottom line: Veterans United specializes in VA loans but offers a wide range of mortgage products. Online conveniences and easily viewed rates make it a strong choice for military borrowers, but its rates and fees are higher than those from some other lenders.
For average interest rates, the winner is: VA Loans
Average mortgage rates on government-backed loans continue to outperform conventional loans, which surprises many homebuyers. But VA loans consistently lead the industry and have lower average interest rates than both conventional and FHA loans.
What are some of the disadvantages of a VA loan?
What is the minimum credit score for a VA Loan? A minimum credit score between 580 and 620 is typically needed for veterans and military personnel seeking a VA loan.
You may be eligible for a VA loan by meeting one or more of the following requirements: You have served 90 consecutive days of active service during wartime, OR. You have served 181 days of active service during peacetime, OR. You have 6 years of service in the National Guard or Reserves, OR.
If your VA loan application was denied, it could be because your income levels are too low. The best thing you can do is ask your lender for clarification. They'll be able to tell you if your income was too low. If so, look for ways to increase your income if at all possible.
VA mortgage loans also come with minimum property requirements that can end up forcing home sellers to make many repairs. Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency's mortgages.
5 Things That Can Hamper Your VA Loan
One of the big benefits of VA loans is that sellers can pay all of your loan-related closing costs. Again, they're not required to pay any of them, so this will always be a product of negotiation between buyer and seller.
5 Common Reasons Homes Fail The VA Loan Appraisal
You Can Close in 30 Days
It is possible to close on a VA loan in as little as 30 days. This makes buying a home with a VA loan just as fast as a traditional mortgage. The key to a fast closing lies in making sure you have everything you need to speed things along. Here are a few tips to help.
The average VA loan is around $210,000. The VA guarantees up to 25% of loans over $144,000. The percentage depends on whether a borrower makes a down payment. Most VA loans are obtained without a down payment; therefore, most VA loans receive 25% backing by the federal government.
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