For qualified military personnel who are buying a home, the best mortgage option is usually a loan guaranteed by the Department of Veterans Affairs (VA). These loans feature no down payments, low interest rates, and don’t require mortgage insurance. While many veterans understand the major benefits of a VA mortgage, here are some “secret” benefits that you may not know about:

  • Determining Eligibility is Fast. While veterans have to apply for mortgage loans like anyone else, they also have to take an additional step, obtaining a Certificate of Eligibility (COE). This is proof that you’ve served in the military and meet one of the following requirements:
      • 181 days of active duty during peacetime
      • 90 days of active duty during wartime
      • Six years of service in the Reserves or National Guard
      • You are the spouse of someone who died while on duty or from a service-related disability
      • Getting a COE usually takes only minutes. Your lender calls the VA and receives the document immediately.
  • Your Entitlement Can be Used Again. If you’ve already used your VA loan entitlement, you can restore it by paying off your VA loan in full. You can also refinance the home into a non-VA loan and get your entitlement restored to use in buying another home with a VA loan. However, this is a one-time option, and you must plan to live in the VA-financed home.
  • You Don’t Have to Pay the Funding Fee in Cash. Most VA loans are partially financed by the VA funding fee, which is a percentage of the loan amount, and varies based on whether the veteran is a first time borrower, the veteran’s military service, any down payment, and the type of home purchased. In general, the funding fee ranges from 1.25 to 3.3 percent, with most veterans paying 2.15 percent. However, the funding fee can be rolled into the loan amount, and doesn’t have to be paid up-front.

Talk to the Experts

At Embrace Home Loans, we are experts in VA mortgage lending. We understand all the ins and outs of obtaining a VA mortgage, and we work with all types of veterans to help them fund home purchases. For more information on VA lending, call us today at 407-733-6425.

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