Military VA Loan

by Akbar Mansoori akbarmansoori

About VA Loans

You may know that the VA loan program is one of the greatest benefits of military service, but what is the history behind VA loans?

 In 1944, the U.S. government created a military loan guaranty program as part of the original Servicemen’s Readjustment Act, otherwise known as the GI Bill of Rights, to help returning service members or their surviving spouses in the purchase of homes. The result is the VA Home Loan, which is a mortgage loan issued by approved lenders and guaranteed by the United States Dept of Veterans Affairs.

The VA Loan Program was Signed into law by President Franklin D. Roosevelt on June 22, this sweeping legislation aimed to level the playing field for those who served our country during World War II, and in many ways it reshaped the course of America. VA loans played a critical role in that development.

After 76 years, this government-backed Home Loan program is as important as ever. The VA Home Loan program has much less stringent credit requirements that other mortgage programs and a zero down payment. VA loans hve been a significant benefit for military borrowers, many of whom would otherwise struggle to secure home financing under other circumstances and through different Mortgage Programs.

The VA mortgage program celebrates its 76th anniversary in 2020 and since  its inception has placed more than 24 million veterans and their families in homes.

VA Program

LOAN TYPE OFFERINGS

Purchase Mortgage

Cash Out Refinance Mortgage (Type I and Type II)

Streamline IRRRL (Interest Rate Reduction Refinance Loan)

New Construction

Renovation

PROPERTY TYPES

1-4 Unit

Townhome

Condo

Modular Home

Manufactured Home (Double-wide or Greater)

PROGRAM HIGHLIGHTS

Credit Score of 550 or Greater

            -VA Elite pricing requires 640 or greater

            -New Construction & Renovation requires 620 or greater

Loan Terms of 10, 15, 20, 25 and 30 Years

Automated and Manual Underwriting Allowed

-VA Elite, New Construction and Renovation require automated approval

Maximum of 100% Financing (not including VA Funding Fee)

            -No down payment required for purchase or new construction

-Cash out refinance may not allow full 100%

No Maximum Debt-to-Income Ratio (with Automated Approval)

Standard, High Balance and Jumbo Loan Sizes are Eligible

Bankruptcy (Ch 7) Discharged 2+ Years

           -Extenuating circumstances allowed with 1+ year out of discharge

Bankruptcy (Ch 13) Reflects 12+ Payments Made & Trustee Approval

Foreclosure Finalized 2+ Years

-Extenuating circumstances allowed with 1+ year from finalization

All Income Allowed by Lender’s Handbook – VA Pamphlet 26-7

First Time and Subsequent Use of VA Benefits Accepted

Surviving Spouses are Eligible

Split-Entitlement is Eligible

Visit for more information: https://flvaloans.com/about-va-loans/

 

 

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Created on Jan 28th 2020 04:43. Viewed 273 times.

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