Established by the United States Department of Veterans Affairs, Veterans Administration (VA) loans are designed to help veterans, active-duty service members, widowed spouses, and other military-related candidates become homeowners. VA loans are flexible and do not require a down payment or private mortgage insurance, making them one of the most desirable loan programs available. Even though there is no private mortgage insurance, most borrowers do have to pay a VA funding fee to support the continuation of VA loans, which can be worked into the mortgage. VA loans can only be used towards primary residences that meet qualifications set by the lender.
VA loans are one of the easier mortgage loan types to qualify for because of their low income and credit score requirements. Overall, VA loans offer many helpful benefits for military veterans, service members, and surviving spouses, but it is not always the best loan option for every military-related borrower. At Coastal Custom Mortgage, we work with each client to determine the best course of action based on the client’s background and future goals, so if you are interested in finding out if the VA loan is best for you, contact us today.