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VA loans through the U.S. Department of Veterans Affairs are available to qualified veterans and military members. The VA does not make loans, but insures loans made available to veterans. The VA guarantees loans made by us to give veterans better rates and terms.
The VA Loan Guaranty Program was put in place in 1944 to help veterans returning from war afford a home. Over 18 million veterans have since used the program. Along with offering loans to buy a home, a VA loan can be used to refinance a VA loan or take cash out of a home.
Eligible borrowers for a VA loan include:
- Active duty military personnel
- Veterans
- National Guard and Reservists who have served for a minimum of six years
- Spouses of military members killed in the line of duty, as well as those rated totally disabled or eligible for compensation prior to death
To get a VA loan in California, KY, MIG will first get a Certificate of Eligibility from the Department of Veterans Affairs for the borrower. This certificate will verify if the veteran has a VA entitlement and can participate in the program. A VA-approved lender can help a borrower obtain the form, or the veteran can request it online.
Advantages of a VA Loan in California, KY
VA loans are very popular because they do not require a down payment (up to conforming loan limit) and underwriting standards offer more flexibility when qualifying a veteran, compared with conventional mortgages. About 80 percent of VA borrowers could not qualify for a conventional home loan.
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Eligible Veterans only - Pull your Certificate of Eligbility online at www.ebenefits.va.gov
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Loan limit: up to $1,000,000
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No down payment is required if the VA eligibility has never been used
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Up to 4% of buyer’s closing costs and prepaids may be paid by the seller
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No monthly Mortgage Insurance (MI)
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Available with THDA
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15, 20, 25 & 30 year terms available
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Fixed or Adjustable Rate Mortgage (ARM)
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Credit scores as low as 600
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Borrowers may be eligible for a second VA loan, with loan amounts of more than $144,000
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VA funding fee may be financed and varies depending on veterans status
Funding Fee Tables
Purchase Loans
Note: Effective for all loans closing on or after January 1, 2020 and prior to April 7, 2023
| Type of Veteran | Down payment | Percentage for First time Use | Percentage for Subsequent Use |
|---|---|---|---|
| Regular Military | None 5% or more 10% or more |
2.30% 1.65% 1.40% |
3.60% * 1.65% 1.40% |
| Reserves/National Guard | None 5% or more 10% or more |
2.30% 1.65% 1.40% |
3.60% * 1.65% 1.40% |
Cash-Out Refinancing Loans:
Note: There are no reduced funding fees for regular refinances based on equity. Reduced fees only apply to purchase loans where a down payment of at least 5 percent is made.
| Type of Veteran | Percentage for First Time Use | Percentage for Subsequent Use |
|---|---|---|
| Regular Military | 2.30% | 3.60% * |
| Reserves/National Guard | 2.30% | 3.60% * |
*The higher subsequent use fee does not apply to these types of loans if the Veteran's only prior use of entitlement was for a manufactured home loan.
| Type of Loan | Percentage for Either Type of Veteran Whether First Time or Subsequent Use |
|---|---|
| IRRRLs | .50% |
Purchase Loans
Note: Effective for all loans closing on or after April 7, 2023 and prior to November 15, 2031
| Type of Veteran | Down payment | Percentage for First time Use | Percentage for Subsequent Use |
|---|---|---|---|
| Regular Military | None 5% or more 10% or more |
2.15% 1.5% 1.25% |
3.3% * 1.5% 1.25% |
| Reserves/National Guard | None 5% or more 10% or more |
2.15% 1.5% 1.25% |
3.3% * 1.5% 1.25% |
Cash-Out Refinancing Loans:
Note: There are no reduced funding fees for regular refinances based on equity. Reduced fees only apply to purchase loans where a down payment of at least 5 percent is made.
| Type of Veteran | Percentage for First Time Use | Percentage for Subsequent Use |
|---|---|---|
| Regular Military | 2.15% | 3.3% * |
| Reserves/National Guard | 2.15% | 3.3% * |
*The higher subsequent use fee does not apply to these types of loans if the Veteran's only prior use of entitlement was for a manufactured home loan.
| Type of Loan | Percentage for Either Type of Veteran Whether First Time or Subsequent Use |
|---|---|
| IRRRLs | .50% |
Information provided by VA website.
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