VA Mortgage Home Loan
The Heritage Group is a branch of Fairway Independent Mortgage Corporation. We have been constantly ranked among the top 20 organizations in the US for VA home loans closed during the last 10 years. Issued by qualified lenders, VA mortgage home loans provide easy home financing to eligible veterans. We value and honor the sacrifices made by the members of the U.S. Armed Forces, and deploy every possible measure to help our country’s heroes realize their dream of homeownership through VA home loans.
What Are VA Home Loans?
Guaranteed by the U.S. Department of Veteran Affairs, VA mortgage loan program aims to help veterans or their spouses (in the event of their death due to a service related cause) obtain long-term home financing. The program helps the veteran buy a home without having to pay any down payment. Borrowers, however, are required to pay a funding fee at the time of closing that can be financed into the loan.
Benefits of VA Home Loans
- Zero down payment
- Competitive interest rates
- The seller is allowed to pay closing costs (up to 4% of the sales price + Title Policy + Survey + around $1,915 in VA “non-allowables”)
- No private mortgage insurance premiums
- No prepayment penalty
- Limitations on the closing costs the veteran can pay for (a.k.a. “non-allowables”)
VA Home Loan Eligibility Criteria
- The applicant must have been discharged honestly from service.
- The individual must have served either 90 days on active duty or 181 days in peacetime.
- Spouse of a veteran who died in the line of duty or due to a service related disability can also be eligible.
- Though not an essential criteria, most lenders look for a credit score of 620 or more.
- The applicant’s debt-to-income ratio must be 41 percent or less.
How Much Can you Borrow with a VA Home Loan?
For those looking to refinance a home with a VA loan, the limit is 90 percent of the “reasonable value” of the property. If refinancing an original VA loan, the amount can go up to 100.5 percent of the reasonable value. The one-half of one percent that is tacked on is a fee charged by the VA. Other limits do apply as well. Under normal circumstances, a VA loan in Texas, without a down payment, cannot exceed $424,100. A VA home loan up to $1 million is possible, but the borrower is required to pay 25% of the different between the maximum loan amount in Texas ($424,100) and the sales price as a down payment. So, for example, to purchase a $900,000 home in Texas a borrower would have to pay $118,975 in down payment ([$900,000 - $424,100] x 25%).
VA Funding Fee for VA Home Loans
There are fees associated with VA loans, which can make them more expensive than some other home mortgage options. The VA funding fee is a one-time fee associated with obtaining a VA loan, no matter whether it is a VA purchase or refinance. The lender sends the funding fee directly to the VA, which is used to offset the cost of administering the loans and covering up defaulted loans, thereby keeping the loan program self-funded. For a full explanation and breakdown for calculating the VA funding fee visit our VA Funding Fee Facts page. The funding fee cost can be to up to 3.15 percent of the loan amount. The fee, however, can be financed with the rest of the loan. VA loans, therefore, can total up to 103.15 percent of the sale price. If the sale price is higher than the reasonable value of the home, the limit of 103.15 percent applies to that reasonable value.
How We Can Help
Fairway Mortgage - Heritage Group, a trusted VA home loan provider in Texas, helps retired and active service members obtain a VA home loan, without having to face many of the hassles other lenders face because of their lack of expertise and experience. Our mortgage consultants possess a deep understanding of VA loans and the application process. You can speak with one of our experts to learn about the eligibility criteria, and to find whether you qualify. Our team members will answer all your questions and will also help you find a VA mortgage home loan that matches your future goals.
Take The First Step Towards Homeownership, Today!
If you are an active or retired member of the US defense forces and planning to buy a house, VA loans just might be the key to your dream home. To discuss your requirements or learn more about VA mortgage home loans, contact us today.