VA Purchase Loan
The Department of Veteran Affairs guarantees VA loans. They offer exceptional benefits to military veterans including competitive interest rates, no down payments (100% financing), and no mortgage insurance. A VA purchase loan is designed to help military veterans with the dream of home ownership.
Benefits of a VA Purchase Loan:
- 100% financing/no down payment.
- Competitive interest rates.
- No prepayment penalty.
- No private mortgage insurance.
- Easier guidelines than conventional loan to qualify.
Who is Eligible for a VA Loan
More Information on VA Loans
Originated by the Veteran Administration in 1944 by the Servicemen’s Readjustment act – also known as the GI bill.
- Was signed by President Franklin D Roosevelt.
- Designed to provide veterans with a federally-guaranteed loan with no down payment.
- Made by banks and mortgage companies for veterans who are eligible for VA loan.
Less risky because lenders are protected against loss if the loan defaults, which makes it easier to qualify for VA loans.
- Minimum FICO of 500.
- More lenient on higher debt-to-income ratios.
- Depending on the Automated Underwriting System results, may even allow outstanding collections.
- Call before to see if you qualify with outstanding collections before paying collections.
- Only spouses of a veteran can be a co-borrower.
- Can still qualify with deferred student loans.
Some lenders have VA lender overlays on top of VA guidelines by the U.S. Department of Veteran Affairs. For example, a lender can have a VA overlay where they only accept 620 and above, but at Nationwide Mortgage & Realty, LLC we go by the VA guidelines.
Foreclosure and Bankruptcy
- Foreclosure, deed-in-lieu of foreclosure, and short sale must be dated greater than 2 years of trustee’s deed.
- Chapter 7 bankruptcy discharged for 2 years.
- Chapter 13 bankruptcy requires 12 month satisfactory pay history and court permission.
- No waiting period after Chapter 13 bankruptcy discharge date.
Owner occupied only. 1-4 unit, PUD’s, condos, manufactured homes permanently affixed to a foundation.