Using a VA loan to Purchase a Home
The VA loan program was created to help Veteran's increase home ownership. The VA allows Veteran's to purchase a home with no down-payment and with no monthly mortgage insurance. The VA loan is a standard 30 year fixed rate mortgage made by a lender that is guaranteed by the Department of Veterans Affairs (VA). In exchange for the VA's guaranteeing the lender against loss, the VA charges the borrower a 1.4% Up Front Mortgage Insurance Premium which is financed into the loan.
- Down Payment and Closing Costs:
- Maximum loan amount is $417,000.00.
- No down payment is required.
- Gift funds can be used for down payment and closing costs allowed.
- Seller can credit up to 4% of sales price towards buyers costs.
- Credit Qualifying Guidelines such as:
- Minimum credit score of 620.*
- VA will allow a home purchase two years after a Bankruptcy.
- VA will allow a home purchase three years after a Foreclosure.
- Underwriting Guidelines:
- Higher debt-to-income ratio's than other home loan programs.
- Less than two years on the job is allowed.
- Self Employment is acceptable.
- You must be a veteran or the spouse of a deceased veteran to qualify.
You must be a Veteran of the armed services in order to qualify.
VA Disclaimer: Cornerstone Mortgage is not acting on behalf of or at the direction of the Department of Veterans Affairs or the Federal government.