The VA Loan Process
- By Ridgewood Front Porch Guest Blogger Brandon Fischer

The VA Mortgage Program boasts some exclusive and attractive perks for veterans.

Benefits

Although somewhat similar to conventional loans, big differences set the VA Loan apart. The government backs the VA program. Therefore, lenders are able to offer lower interest rates.  Also, the VA does not require a down payment on the home. Most conventional loans require an 18% to 20% down payment. 

Veteran’s credit scores also do not need to be as high as is required for a conventional loan.  Even people with great scores can be denied for conventional mortgages.  So breathing a tad easier with the VA loan is a nice thought.  However, a veteran should work to raise his or her score as high as possible.  A higher credit score and reasonable debt to income ratio could help one to get a loan amount up to $729,000.

With conventional loans, private mortgage insurance can cost an extra $100 to $700 per month!  The VA-backed loan does not charge PMI.

Eligibility and Applying

A lending counselor can help a service member gather all the necessary documentation needed for a VA loan.  The Department off  Veterans Affairs website provides a detailed list of what’s required as well.

The service member must be able to prove that they served in the military for 90 days during wartime and 181 days during a time of peace.  He or she must have been honorably discharged. Veterans, active duty personnel, reservists and National Guard members can qualify.  Also, some surviving spouses might be eligible for the VA loan.

Right now, the VA loan is a stress free process for veterans and their families.  Applying is a simple talk with VA loan counselor and a few more simple steps.  Do not let the opportunity pass by.