Luxe Key Realty, LLC.
Olga Rodriguez, Luxe Key Realty, LLC.Phone: (786) 217-7347
Email: [email protected]

FAQ: VA Loans

by Olga Rodriguez 07/09/2018

We all know that buying a home is expensive. For first-time buyers who don’t have the luxury of equity for a down payment, it can be difficult to find a way to finance your home without taking on a huge interest rate and mortgage insurance.

Fortunately, loan programs like those offered by the U.S. Veterans Affairs can be a godsend. However, there is a great deal of confusion around who is eligible for VA loans and how to acquire them.

So, in today’s post, we’re going to cover some of the frequently asked questions of VA loans. That way, you can feel confident in knowing whether or not it’s a good financing option for you and your family.

VA Loans FAQ

Who is eligible for a VA Loan?

VA loans aren’t just for veterans. Most members of the military, including Reserve and National Guard members can apply. Additionally, spouses of service members who died from a service-related disability and those who died on active duty can apply as well.

How long do you have to service to be eligible?

The VA defines eligibility as having served no less than 90 days of service during wartime and 181 days of continuous service during peacetime.

Who are VA Loans offered by?

Like any other loan, VA loans are offered by private lenders. The difference is that VA loans are guaranteed by the government. That means that the federal government takes on some of the risk of lending to you, therefore making it possible to secure a loan with little or no down payment.

Should I make a down payment on a VA loan?

If you have the means, making a down payment will almost certainly save you money in the long run. If you can put down 10% of your total mortgage amount, you can also significantly reduce the VA Funding Fee.

Will I have to pay private mortgage insurance?

Private mortgage insurance (PMI) is something that borrowers pay on top of their mortgage payments and interest. This additional insurance helps borrowers buy a home with a small down payment. VA loans allow you to secure a mortgage without PMI.

Are VA loans different for active duty, National Guard, and Army Reserve members?

Each type of service member is eligible for a VA loan. However, there are some minor differences regarding the VA Funding Fee. With no down payment, an active duty member would pay 2.15% of the loan amount in fees. National Guard and Army Reserve members pay around 2.40% with no down payment.

What does my credit score need to be to get a VA loan?

The VA doesn’t have a set minimum credit score. However, the private lenders that offer the loan do. On average, the lowest credit score that you can secure a VA loan with is around 620. That being said, a higher score will secure you a lower interest rate, saving you money over the lifetime of your loan.

About the Author
Author

Olga Rodriguez

Olga L. Rodriguez, Realtor I am a customer-service-oriented real estate agent who helps home buyers and sellers in Florida, in the cities of Miami, Kendall, Coral Gables, Hialeah, Palmetto Bay and Miami Beach. If you're looking for an agent with patience, perseverance, and a passion for helping people, you've just found her! My working experience I received my real estate license in 1986. Since that time I have worked in the real estate field both part time and full time. When raising my children I worked as a teacher and part time real estate agent. I have also worked as a real estate paralegal, and appraiser. Working as a teacher I learned the skills of patience, perseverance, and being organized. My paralegal experience allows me to efficiently explain legal documents to my clients. The knowledge that I gained from working as an appraiser allows me accurately price the homes of my sellers and advice my buyers on the price of their purchases. My love for math, negotiating, business and my passion for helping people has led to choose real estate as my preferred profession. As a realtor I can truly say, "I love my job”. What Makes Me Different from Other Agents Service: I strive to exceed my clients' expectations in all aspects of the real estate process by providing excellent customer service and effective negotiating practices. Education: Success in real estate starts with education. You have to understand the nuances of the local market, the dynamics of supply and demand, and how these things affect buyers and sellers. I make sure that my buyers and sellers are well informed at every step of the process, so they can make smart decisions. Contact: Buyers, sellers and renters have a lot of questions during their real estate transaction. I let them know what is happening every step of the way during their real estate transaction. I am available at all times and can be reached by phone, text, or email. A Smoother, Less Stressful Real Estate Experience Buying, selling or renting a home can be exciting, but it can also be stressful. That's why I work extra hard to keep my clients informed, and to make the process as smooth as possible. In my free time I enjoy traveling, visiting new cities, states and countries. I also enjoy swimming, cycling, and boating.