More than 30 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement. Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA Home Loans: 

No down payment is required for most buyers. 

Loan maximum up to 100 percent of the VA-established reasonable value of the property. VA Loans generally may not exceed $417,000 

Flexibility of negotiating interest rates with the lender. 

No monthly mortgage insurance premium to pay.

Limitations on buyer's closing costs.

Thirty year loans with a choice of repayment plans:

Traditional Fixed Rate loans

The VA loan is an assumable mortgage, subject to VA approval of the  assumer's credit. No prepayment penalty.  VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties. 

Veterans with active duty service, that was not dishonorable, during World War II and later periods are  eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean Conflict (June 7, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days' service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days' active service. Veterans of enlisted service which began after September 7, 1980 or officers with service beginning after October 16, 1981 must in most cases have served at least 2 years. Persian Gulf Conflict. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions. Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. The expanded eligibility for Reserves and National Guard individuals will expire October 28, 1999. Contact the local VA office to find out what is needed to establish eligibility. Reservists will pay a slightly higher funding fee than regular veterans. (See paragraph entitled "Costs of Obtaining a VA Loan"). 

To buy a home, including townhouse or condominium unit, in a VA-approved project.  A refinancing loan may not exceed 90 percent of the appraised value plus the costs of the improvements. Check with a lender or VA for details. To refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate. To buy a manufactured home. 

These loans are often made without any down payment at all and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. 

We do not recommend a VA loan if you have a down payment. The VA funding fee is an inefficient use of you money and if you can avoid it then we recommend that you use conventional financing. 

Call American Brokerage at 800-874-8760 or apply on line with our quick, secure application and get an answer the same day on your Portsmouth VA Loan!

To obtain a VA loan, the law requires that: The applicant must be an eligible veteran who has available entitlement. The loan must be for an eligible purpose. The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan. The veteran must be a satisfactory credit risk. There is the normal requirement that the veteran must be able to afford the house payment.

Funding Fee: A basic funding fee of 2.0 percent of the principal loan amount must be paid to VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent. A funding fee of 2.75 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent down payment will reduce it to 2.0 percent. The funding fee for loans to streamline refinance an existing VA loan with a new VA loan to lower the existing interest rate is 1/2 percent. Veterans who are using entitlement for a second or third time,  who do not make a down payment of at least 5 percent, are charged a funding fee of 3 percent. NOTE: For all VA home loans, the funding fee may be paid in cash or it may be included in the loan up to a maximum loan amount of $203,000. Other Closing Costs Reasonable closing costs may be charged by the lender. These costs may not be included in the loan. The following items may be paid by the veteran purchaser, the seller, or shared. 

VA appraisal ($350 for single family detached, $425 for condo) 

Credit report ($14 to $75 depending on individual situation)

Loan origination fee (1 percent of the loan amount)

Discount points (Vary based on market conditions and interest rate and lock period)

Title insurance (lender's policy about $400 to $700)

Recording fees $80

Home inspection $200 to $500

Prepaid interest (Interest that accrues between the time we close the loan and the first of the month that your mortgage starts.)

Tax and insurance impounds and prorating (depends on date of closing)

NEED MORE INFORMATION?

Veterans seeking more detailed information concerning the VA home loan program may request VA Pamphlet 26-4 "VA-Guaranteed Home Loans for Veterans", or VA Pamphlet 26-6 "To the Home-Buying Veteran" from the nearest VA office. Loan Guaranty personnel at that office will also be pleased to answer specific questions and provide any other assistance they can.  Remember, VA-guaranteed financing is a benefit which Congress intended eligible veterans should have. If you are a veteran homebuyer or know of one, it makes sense to look into the VA loan program as a good way to finance a home purchase. A list of VA offices may be found in Help & Information option.

Call American Brokerage at 800-874-8760 or apply on line with our quick, secure application and get an answer the same day for your VA loan in Portsmouth!