Mortgages

Everything You Need To Know About VA Loans

Let’s talk about a home loan that honors the service of our military men and women.

First Thing’s First…What is a VA Loan?

A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs (VA). It was designed to offer long-term financing to eligible American veterans or their surviving spouses. The goal of the program is to supply home financing to eligible veterans with no downpayment.

Benefits of VA Loans:

No Downpayment Required

With a VA Loan, you can use the extra money saved from no down payment for things like packing, moving and getting settled into your new home. Not having to make a down payment can provide some peace of mind during the homebuying process.

No Private Mortgage Insurance (PMI) Premiums Required

You can save money by not having to pay PMI as VA loans do not require you to cover this cost. With other types of loans, the borrower is typically responsible for paying mortgage insurance for any loan with less than a 20% down payment.

VA Loans Are Easier To Qualify For

Though VA loans have many of the same perks as traditional loans, they may be easier to qualify for. If you qualify, a VA loan is an easier way to close and save money.

Closing Costs

VA rules limit the amount a borrower can be charged for closing costs. Also, closing costs may be paid by the seller.

VA Loans Are Assumable

This means that if you sell your home, the new purchaser may be able to assume (or take over) your mortgage rather than applying for a new mortgage.

Payment Assistance

VA may be able to provide you some assistance if you run into difficulty making payments.

VA Refinance

For refinancing, there’s a simple and easy Streamline VA option available which has no prepayment penalties and minimal underwriting requirements.

Who Can Apply For A VA Loan?

  • Those on active duty
  • Veterans
  • National Guard Members
  • Reservists
  • Cadets in the Air Force, Coast Guard or U.S. Military
  • Officers of the National Oceanic and Atmospheric Association (NOAA)
  • Those who have served 181 days continuously during peacetime or served 90 days during wartime
  • Those veterans who enlisted after September 7th, 1980 or who began service after October 16th, 1981 must have served a minimum of 2 years
  • National Guards and reservists must have served a minimum of 6 years within certain criteria
  • The surviving spouses of veterans who died from a service-related disability or during active duty

VA Renovation Program

Is It Right For You?

If you have a home in need of minor repairs but no cash on hand, you may be able to renovate your home with the benefits of VA lending. The VA Renovation Program is designated to help the men and women who serve our country repair or upgrade their home with the low rates VA lending programs offer.

It allows for minor renovation costs to be included in the loan amount of a house for purchase, or for repairs being done to an existing home with equity. It’s also perfect for those looking to do small repairs, such as repainting and fixture swaps, or accessibility upgrades, such as ramps and rails.

Other Program Features

  • Up to $35,000 in renovation costs
  • No minimum repair amount
  • includes minor and non-structural repairs
  • Accessibility upgrades
  • Flexible delivery channels
  • For purchase or refinance properties
  • Cosmetic repairs allowed
  • No consultant required

Southern Trust Mortgage is proud to deliver affordable VA mortgage financing to eligible veterans and active duty servicemen and women of the United States’ military. Being that the Southern Trust footprint covers many military areas, our loan officers are extremely experienced in VA lending and all VA programs. Contact us today to get started!