In 1944, the Servicemen’s Readjustment Act was passed to provide numerous benefits to veterans and their surviving spouses. Among those benefits was the VA loan program. The VA loan program makes homeownership easier for veterans by offering benefits such as 100% financing, no private mortgage insurance, and limited closing costs.
There are many advantages to the VA loan when compared to similar mortgage alternatives. These advantages are made possible by the Department of Veteran’s Affairs (VA) insuring the home loans offered to eligible veterans.
Monroe VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- VA regulation limits closing costs
- Up to $424,100 loan amount (certain counties may be higher)
Monroe VA Loan Limits
Most veterans, military, and spouses of deceased military members are eligible to apply for Monroe VA loans but eligibility will depend on service status. If minimum active duty service requirements are met, Veterans can apply at any time. Active-duty members will need to complete approximately 6 months of service before reaching eligibility. National Guard and reservists will need to wait 6 years before becoming eligible however, if they are called to active duty, they will become eligible after completing 181 days of service. All applicants must obtain their Certificate of Eligibility (COE). If you are unsure about how to obtain this, we will be happy to assist you during the application process.
Lenders typically ask to see a credit score of 620 or higher for those applying for a VA loan, but the VA does not actually require a minimum credit score. No minimum credit score requirement means that at America Mortgage, LLC, we can be flexible with every borrower depending on their unique circumstances. As an example, we may be able to approve a slightly lower credit score if a borrower can offer a larger down payment. To support your application, be prepared to provide information such as W-2 statements, recent paystubs, and documentation of checking accounts and savings accounts
Current homeowners can also take advantage of the refinancing programs the VA has to offer. VA cash-out refinance loans are available to homeowners in need of extra cash for expenses such as home improvements or high-interest debt consolidation. Those looking to simply lower their monthly payment and improve their interest rate can utilize the Interest Rate Reduction Refinance Loan (IRRRL). The IRRRL is also referred to as the streamline refinance loan.
At America Mortgage, LLC, our goal is to help veterans throughout Monroe and all of Washington with their VA loan needs. For more information or for any questions you may have on Monroe VA loans, contact us today.