From Lake Michigan to the Ohio River and everywhere in between, Indiana offers a diverse landscape of areas to call home. Whether you like living in the city or prefer the suburbs, or you are looking for lakefront property to rest and relax or country living to farm or raise livestock, Indiana offers it all in an affordable package that you can call Home!
What is a VA Home Loan?
A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) using financing from qualified lenders. The VA loan was designed to offer financing to eligible active duty military and veterans or their surviving spouses provided they are not married.
The program offers 100% financing (up to the county’s loan limit) and private monthly mortgage insurance is not required.
A VA home loan can be used to purchase a home or refinance an existing mortgage. Veterans can do a cash out refinance for up to 100% of the appraised value.
An IRRRL (Interest Rate Reduction Refinance Loan) helps homeowners refinance an existing VA loan to a lower interest rate loan or from an adjustable rate to a fixed-rate loan. The goal of the program is to help lower monthly payments or make payments more predictable by fixing the interest rate.
While this mortgage is considered a “guaranteed loan”, the VA does not guarantee that you will qualify as you do need to meet their rather common sense standards. It simply means that the VA will guarantee that the lender will recoup some of their costs if the borrower defaults.
Primary Benefits of a VA Home Loan:
100% financing up to the conforming loan limit (now $424,100 in our area). Larger loans are acceptable but the borrower will be required to bring funds to the closing.
Gift funds are allowed
No monthly private mortgage insurance is required.
Sellers can give concessions up to 4% of the purchase price PLUS pay closing costs
The loan is assumable, subject to VA approval of the buyer’s credit standing and other underwriting factors. This means that if interest rates rise, a buyer could potentially assume the current loan making the home more attractive. Does not have to be another veteran.
Low fixed rates, similar to FHA rates, mean that the payment will be the same over the life of the loan except for changes in property taxes and insurance escrows.
Energy efficient improvements can be added to the 100% financing
Perfect credit is not required!
Who is Eligible for a VA Mortgage Loan?
While most veterans with an honorable discharge will qualify, the guidelines are based on when the veteran was discharged and their length or service, as well as if they were regular military or in the Reserves or National Guard.
To determine eligibility, we will need to request a Certificate of Eligibility. This will show the eligibility status and the amount of entitlement remaining.
VA Documentation Needed:
The three specific pieces of documentation a lender will need to determine your eligibility is a DD214 for discharged veterans, a statement of service for active military personnel, and a certificate of eligibility (COE) to determine you have VA entitlement.
Because each lender has different qualifying guidelines, the next step is to contact us to find out if you meet the qualifying criteria such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and residual income. We can also help you attain the certificate of eligibility on your behalf.
Frequently Asked Questions:
Q: Are the children of a living or deceased veteran eligible for the home loan benefit?
No, the children of an eligible veteran are not eligible for the home loan benefit.
Q: How can I obtain proof of military service?
Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit.
Thank you to all our military personnel for the sacrifices you have made for our freedom!
We proudly offer VA Home Loans in the states of Indiana and Illinois. If you need a lender in a different state, please contact us as we may able to recommend one for you.