As a benefit of your service, the Department of Veterans Affairs offers unique resources to help those with military experience purchase a home with a low or zero down payment. VA Loans offer flexible options as either a Fixed Rate or Adjustable Rate mortgage.

VA loans are available and provide the buyer the chance to finance 100% of the purchase price of the home. This means no down payment is required. It is important to note that buyers will still need to qualify for the loan. This means that lenders will look at their credit and ability to pay the mortgage. While a better credit score decreases the interest rate you pay, we at Barefoot Mortgage have options with credit scores down to 580 with the VA.

You may also be responsible for typical closing costs, such as recording the title or paying a closing settlement fee. These can be negotiable with the seller and something to discuss with your mortgage concierge before making an offer on a home.

The VA Loan process

A VA loan works the same as most other home purchases, with a buyer making a written offer to purchase a home under specific conditions (price, closing cost assistance, other contingencies), and then going through an approval process with a lender. The key difference with a VA loan is that the Department of Veterans Affairs requires that all homes purchased through this program meet certain habitability requirements. They will send out a home inspector and appraiser to make sure that the home is in good working order and is worth what you are paying.

This step may sometimes cause delays, especially if repairs are needed after the inspector looks around. Issues at the home do not necessarily mean that the buyer cannot use the VA loan, just that repairs will need to be done before the home purchase can be completed. The VA recently started offering a VA loan to be used for homes that need renovation on a limited basis.

How VA Loans Work

• – Purchase your home with as little as 0% down payment.
• – 30, 25, 20, and 15 year terms are all available with fixed rates.
• – 5 and 7 year adjustable rate mortgage available.
• – Jumbo VA loans available.
• – VA Streamline Refinance (IRRRL) with a reduced funding fee and flexible documentation requirements – available for veterans currently in VA loans.
• – No monthly PMI (Private Mortgage Insurance).
• – VA loans are governed by the U.S. Department of Veterans Affairs.
• – Pay your mortgage off at any time without pre-payment penalties.

Have questions? Give us a call! Your mortgage concierge would be happy to answer all of your questions.

*The Barefoot Mortgage Group is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.