If you’ve served your country, you may be eligible for a powerful homebuying tool. Here’s what every Veteran should know about VA loans.

A Unique Benefit You’ve Earned

Backed by the Department of Veterans Affairs, VA loans are available to active-duty service members, National Guard members, Reservists, and eligible surviving spouses. The VA’s guaranty helps make exceptional loan terms possible.

The Major Advantages

This program offers financial benefits not found in most other loan types.

  • No down payment required. This is the signature advantage of a VA loan and removes the largest barrier to homeownership. Eligible buyers can purchase a home without saving the typical 3% to 20% down required elsewhere.
  • No Private Mortgage Insurance (PMI). VA loans do not require mortgage insurance. This eliminates a cost that can add hundreds of dollars to a monthly payment on conventional loans with less than 20% down.
  • Attractive rates. VA loan interest rates are often among the lowest available.
  • Flexible credit guidelines. While the VA does not set a minimum credit score, its backing helps lenders approve some buyers with scores in the low 600s. VA loans also tend to be more forgiving of past issues such as bankruptcies or foreclosures.
  • Limits on closing costs. The VA regulates certain charges, and sellers can contribute up to 4% of the loan amount toward closing costs.

VA Funding Fee

Most borrowers pay a one-time funding fee, commonly between 1.25% and 3.3% of the loan amount. This fee can be rolled into the loan.

VA Loan Eligibility

Eligibility is based on service. In general, you may qualify if you have completed:

  • 90 consecutive days of active duty during wartime
  • 181 consecutive days of active duty during peacetime
  • 6 years of service in the National Guard or Reserves

Some surviving spouses may also be eligible. Your lender can confirm eligibility by pulling your Certificate of Eligibility (COE).

Finding the Right Lender and Agent

Choosing a lender who specializes in VA loans is essential. They can guide you through the COE, appraisal, and underwriting requirements. Pairing that lender with a real estate agent who understands VA guidelines helps ensure your offer is structured correctly and avoids contract pitfalls.

At First United, we specialize in VA loans. To check your eligibility and to discuss how you can use this powerful financial tool, call us at (972) 591-3097 or connect with us online.