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VA Loan

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.

VA Loans

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, 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.

VA Mortgage Program

Advantages of a VA Loan

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.


 
  • Low, competitive interest rates
  • No down payment necessary, up to the conforming loan limit
  • No private mortgage insurance (PMI), regardless of down payment size
  • More flexible credit, income and debt requirements
  • Available to eligible borrowers with a prior bankruptcy or foreclosure
  • No prepayment penalties
  • Seller can pay up to 6 percent toward closing costs
  • Streamlined refinancing available
  • VA funding fee can be financed *Surviving spouses who get a VA loan do not need to pay the funding fee *Disabled veterans may be exempt from paying the VA Funding Fee
  • Loan is assumable
Department of Veterans Affairs

Funding Fee Tables


Purchase Loans

Note: In 2011, funding fees were lower from October 1 through October 5, and November 18 through November 21. The enactment of Public Law 112-56, signed November 21, 2011, establishes rates at the levels below.

 
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%
1.50%
1.25%
3.3% *
1.50%
1.25%
Reserves/National Guard None
5% or more
10% or more
2.4%
1.75%
1.5%
3.3% *
1.75%
1.5%

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 2.4% 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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