VA Purchase Loan

VA Purchase

VA Purchase Loan

  • The Department of Veteran Affairs guarantees VA loans.
    • They offer exceptional benefits to military veterans including low interest rates, no down payments (100% financing), and no mortgage insurance.
  • A VA purchase loan is designed to help military veterans 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 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 AUS 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.

Eligible Properties:

  • Owner occupied only. 1-4 unit, PUD’s, condos, manufactured homes permanently affixed to a foundation.


Get Pre-Approved

Start by applying to get pre-approved today.

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