VA Loan

• Conform to HUD (Housing and Urban Development) guidelines in conjunction with the department of veterans affairs with regard to determining credit worthiness of lending.
• Qualifying FICO credit scores can vary depending on the lender, but are similar to FHA that they can be lower than average, typically 560 is the cutoff.
• Rates of interest tend to be lower than FHA for the reason of them because they are government insured and only available to a select population and select properties.
• While VA home loans are intended for primary residences only you may have multiple VA home loans if your entitlement allows for it. Entitlement is a calculation and its limit is based in part on the loan amount and is reduced by any outstanding VA loans.
• No Max income limitations.
• Can be used draw equity, rehab, and lower the payments on your home.
• Similar to FHA the ability to “streamline” the refinance of your home if you have an existing VA loan, this eliminates, appraisal, debt observation (except for the mortgage), and income qualification for the approval process. This is known as an Interest Rate Reduction Refinance Loan or (IRRRL).
• Highest loan to value for consumer residential mortgage at 100% of the property’s value.
• Up front mortgage insurance known as the “funding fee” may be applicable and vary in percentage depending on military member’s status, previous use of entitlement, and any service connected disability.
• No monthly mortgage insurance, unlike FHA.
• More stringent debt to income calculations, but can be flexible depending on any compensating factors.

Learn more about VA loan programs here:  https://www.benefits.va.gov/homeloans/