VA Loans


VA helps Service members, Veterans, and eligible surviving spouses become homeowners.

In recent years, the VA Home Loan program is more important than ever to our service members.

Lenders nationwide have recently started tightening their lending requirements in the wake of the housing market collapse. This has made the VA Loan a lifeline for military homebuyers, many of whom find home buying difficult when faced with tough credit standards and down payment requirements. Galaxy Lending Group is here to make things easier and guide you through the VA loan process.

 


 

The Facts About VA Loans:

What is a VA Loan?

VA loans are home loans for the purchase of a primary residence available to consumers who have served or are presently serving in the U.S. military. While the Department of Veterans Affairs (VA) does not lend money for VA loans, it backs loans made by private lenders (banks, savings and loans, or mortgage companies) to veterans who qualify.

Who is Eligible for a VA Loan?

  • Veterans
  • Active-Duty Personnel
  • Reservists/National Guard Members
  • Some Surviving Spouses

Check Eligibility for a VA Loan:

  • Have served 90 consecutive days of active duty during wartime
  • Have served 181 days of active service during peacetime
  • Have served more than 6 years of service in National Guard or National Reserves
  • A Spouse of a service member who has died in the line of duty or as a result of a service related disability
  • Credit score ≥ 620
  • Debt to income ratio is < 57%
  • 0% down payment options available
  • Extra underwriting requirements will vary by borrower situation

What Are the Benefits of a VA Loan?

There are many, as taken directly from the Veterans Affairs site:

  • No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
  • Buyer informed of reasonable value.
  • Negotiable interest rate.
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation).
  • Closing costs are comparable with other financing types (and may be lower).
  • No mortgage insurance premiums.
  • An assumable mortgage.
  • Right to prepay without penalty.
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.

How Can Veterans Get VA Loans?

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program, but will need a Certificate of Eligibility from the VA to prove to the lender that they are eligible for a VA loan. Lenders can also get the certificate on behalf of their clients.

 


More Resources:

For general information about VA Loans, visit The United States Department of Veterans Affairs.

To view frequently asked questions about VA loans, visit The United States Department of Veterans Affairs.