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The Benefits of VA Home Loans for Veterans

If you’ve served, you’re probably aware of the VA home loan benefit. However, VA home loans are often talked about in the abstract—let’s dive a little deeper into how this type of loan rewards you for your service.

What is a VA Home Loan?

A VA home loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan can be issued by qualified lenders like Peoples Mortgage.

The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (certain restrictions may apply). The basic intention of the VA direct home loan program is to supply more affordable home financing to eligible veterans for their service. Most single-family homes are eligible, and Peoples Mortgage can help approve condos that are not currently approved by the VA. In either case, you will want to consult with one of our Loan Officers to review each individual property.

VA loans can be for either purchase or refinance and come as either fixed or adjustable-rate mortgages (ARMs).

VA Home Loan Details

The VA home loan allows for up to 100% financing. According to the VA, the main benefits of the VA home loan program include no down payment or Private Mortgage Insurance (PMI) requirement, lower interest rates, limited closing costs, and the lifetime use of VA home loan program. The VA touts the fact that “nearly 90% of all VA-backed home loans are made without a down payment.”

Peoples Mortgage also offers loans for veterans with up to $6,000 for energy-efficient improvements. It’s important to note that a VA funding fee of 0 to 3.6% of the loan amount is paid to the VA—but this fee may be financed. Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, which allows for larger loans with the same payment. Credit scores can also be as low as 580.

Am I Eligible for a VA Home Loan?

You are eligible if you have served under any of the following timelines and were honorably discharged:

  • 2 years active-duty
  • 6 years Reserve duty
  • 90 days war time
  • 181 days non-war time

Full eligibility requirements can be found here:

Applicants are required to obtain a VA home loan Certificate of Eligibility (COE) to begin the loan process. The COE verifies lets lenders like Peoples Mortgage know that you qualify for this program.

The benefits you can get from this program because of your service are well deserved. We are happy to review your eligibility and help you quickly obtain your COE—our Loan Officers are ready to guide you on your home loan journey!

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