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Here at appli we take care of our veterans upfront! As a veteran-focused lending company, it is our mission to give back to those who have selflessly served our country. We're committed to making your lending experience as smooth as possible. One of the ways we demonstrate this commitment is by covering the upfront appraisal fees for our veterans.
Our VA loans exclude fees associated with appraisals.
*applicable to all loan amounts > 250k & on qualifying VA transactions
VA Purchase Loan
VA Purchase Loans are a special type of mortgage backed by the U.S. Department of Veterans Affairs, designed to assist veterans, active-duty service members, and select military spouses in purchasing a primary residence. This loan option offers many benefits to our nation's heroes, such as:
☆ No Max Loan Amount
☆ Up to 100% Financing
☆ Eligible on 1-4 Unit Properties
☆ Flexible Credit Qualifications
VA Loans Aren't Only For Purchases!
VA IRRRL
A VA Interest Rate Reduction Refinance Loan (VA IRRRL) offers several benefits, including the potential for lower interest rates, reducing your monthly mortgage payments & saving you money. The application process is simplified compared to traditional refinancing, requiring less documentation, & it typically involves no out-of-pocket costs as closing expenses can be rolled into the loan. Moreover, a new home appraisal is usually not required, saving time & money in the process,
☆ Lower Interest Rates
☆ Simplified Application Process
☆ No Out-of-Pocket Costs
☆ No Appraisal Required
VA Cash-Out
A VA Cash-Out Refinance Loan allows Veteran homeowners to refinance their existing mortgage, regardless of its type (VA or non-VA), and simultaneously take out a larger loan than the current balance to access the difference in cash. The cash obtained can be used for various purposes, including paying off debt, home improvements, education expenses, or any other financial need.
☆ Access 100% Equity
☆ Consolidate Debt
☆ No Private Mortgage Insurance Required
☆ Flexible Income & Credit Requirements
Want to see just how much money you're entitled to as a Veteran? Use our simple calculator!
Frequently Asked Questions:
I can only have one VA loan, right?
Actually, that's a common misconception. It is possible to have more than one VA loan at the same time, or to obtain another VA loan after paying off a previous one. This concept is often referred to as "second-tier entitlement" or "bonus entitlement."
Here's how it works:
Full Entitlement Reset: If you pay off your VA loan in full and sell the property, you can have your full VA loan entitlement restored. This means you could get another VA loan with zero down payment, provided you meet the other requirements.
Multiple VA Loans: Even if you have a current VA loan, you might still have remaining entitlement to get a second VA loan without selling your existing home. This is particularly true if you didn't use your full VA entitlement with the first loan. However, there are limits, and the total of the two loans can't exceed the maximum entitlement available.
Subsequent Use Fee: If you use your VA loan benefit again (whether it's a second loan while holding onto the first property or a subsequent loan after selling a previous VA-financed property), you might have to pay a higher VA Funding Fee unless you're exempt (e.g., due to receiving a service-connected disability compensation).
Loan Limits & Entitlement: The VA doesn't set a cap on how much you can borrow, but there are limits on how much liability the VA can assume. This affects the amount of money an institution will lend you without requiring a down payment. These loan limits can vary by county and are subject to change annually.
It's essential to understand that while the VA guarantees a portion of the loan, it's the lender who provides the actual loan and determines the terms. So, even if you have remaining entitlement, you'll still need to qualify based on credit, income, and other lender requirements.
Do I have to have an appraisal if I'm just refinancing to lower my interest rate?
If you're refinancing a VA loan to reduce your interest rate, you're likely considering the VA Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA Streamline Refinance. The IRRRL is designed to help homeowners with an existing VA loan lower their monthly mortgage payment by refinancing to a lower interest rate.
For an IRRRL, the VA does not typically require an appraisal. That's one of the benefits of the program—it's a streamlined process with less documentation and fewer requirements than a standard refinance.
Can I have a co-borrower on my VA loan?
Yes, you can have a co-borrower on your VA loan. However, the specifics of the situation will determine how the VA loan entitlement and guaranty are applied, and it might also influence the down payment requirements.
Here's a breakdown based on the type of co-borrower:
Veteran Co-Borrower: If the co-borrower is another eligible veteran, and both veterans will use their VA loan entitlement, then the loan might not require a down payment, provided the loan amount doesn't exceed the combined available entitlement of both veterans and the county loan limits.
Spouse as Co-Borrower: If your spouse is the co-borrower, the VA will treat the loan as fully guaranteed, even if your spouse is not a veteran. This is the most common scenario for VA loans with co-borrowers. In this case, the standard VA loan terms, including potential zero down payment, will apply.
Surviving Spouse: A surviving spouse of a veteran who died in service or from a service-connected disability can also be eligible for VA loan benefits. If they are the co-borrower, the loan can be treated as fully guaranteed.
Other Considerations: It's crucial to understand that having a co-borrower does not relieve the veteran of the responsibility for the loan. Both parties are jointly responsible for the loan and its repayment.
Lastly, individual lenders might have their own policies and requirements regarding co-borrowers. It's a good idea to discuss your specific situation with a VA loan specialist or lender to get detailed information and understand all implications.
Am I able to use my VA Loan to purchase an investment property?
The primary purpose of the VA loan program is to help veterans and active-duty service members purchase and live in their own homes. As such, the VA loan is not designed for purchasing investment properties.
There are, however, a few things to consider:
Primary Residence Requirement: To use a VA loan, the borrower must intend to occupy the home as their primary residence. Generally, borrowers are required to move into the home within 60 days of closing, though there can be exceptions (for example, if the borrower is deployed overseas).
Subsequent Use: If you've purchased a home with a VA loan and lived in it as your primary residence for some time, you might decide to move and rent out the property. In such a case, it's possible to retain the property as a rental while moving on to another home. However, if you want to use your VA loan benefit again for the new home, you'll need to meet the primary residence requirement for that property as well.
Multi-Unit Properties: One potential avenue for investment is purchasing a multi-unit property (up to 4 units) using a VA loan. You would need to live in one of the units as your primary residence, but you could rent out the other units. This way, you're both meeting the VA's occupancy requirement and generating rental income.
Refinancing: If you have an existing VA loan on a property you once occupied but now rent out, you might be eligible to refinance it through the VA Interest Rate Reduction Refinance Loan (IRRRL) program. The occupancy requirement is more lenient for IRRRLs, as you only need to certify that you previously occupied the home.
Limitations: Remember that the VA loan program comes with limits on loan amounts, which can vary by county. If you're considering a more expensive multi-unit property, ensure it falls within these limits, or be prepared for potential down payment requirements.
In summary, while the VA loan is primarily for owner-occupied properties, there are scenarios where you can generate rental income or hold onto a property as an investment. If your primary goal is real estate investment, other types of financing might be more suitable. It's always a good idea to consult with a VA loan specialist or financial advisor to discuss your specific goals and circumstances.
What's the maximum loan amount for a VA loan?
The VA itself doesn't set a cap on how much an individual can borrow to finance a home. Instead, there are limits on the amount of liability the VA can assume, which usually affects the amount of money an institution will lend you without requiring a down payment.
No Down Payment Limit: For VA loans, there's no longer a strict maximum loan amount for which a veteran can obtain a loan without a down payment. This change came about due to the Blue Water Navy Vietnam Veterans Act of 2019, which removed loan limits for first-time VA loan users and those who have fully paid off their previous VA loan and disposed of the property.
County Loan Limits: While there's no VA-imposed loan limit for most veterans, individual lenders might have their own limits, and there are still county loan limits that affect the amount of entitlement the VA will guarantee without requiring a down payment. If a veteran chooses to buy a home with a price above their county's loan limit, they might need to make a down payment. However, this down payment will likely be significantly less than what would be required with conventional financing.
Subsequent Use: For veterans who already have a VA loan or have had one in the past that they haven't paid off, the county loan limits still play a role in determining how much additional entitlement they might have available for another VA loan.
Annual Adjustments: These county loan limits can change from year to year based on housing market conditions.
Lender Limits: Remember that while the VA might guarantee a certain amount, the actual loan amount you can get approved for will depend on factors like your income, credit history, debt, and the lender's policies.
For the most current VA loan limits in a specific county or to get details on your personal situation, it's a good idea to contact the VA directly or consult with a VA-approved lender. They will be able to provide the most up-to-date information.
What's the minimum credit score I need to have to qualify for my VA loan?
The VA itself does not set a specific minimum credit score for VA loan eligibility. Instead, the VA requires that borrowers demonstrate a reliable and stable income and a history of responsible credit use. However, the VA does not make loans directly; it guarantees loans made by private lenders. As a result, individual lenders often set their own credit score requirements.
Here's a general breakdown:
Lender Requirements: Most VA-approved lenders do have a minimum credit score requirement, many lenders typically require a credit score of at least 620, but we also work with lenders that can go as low as 500 FICO, in some scenarios. On the other hand, more competitive lenders or those offering better interest rates might require a higher score, perhaps 640 or 660.
Other Factors: While credit score is an essential factor, lenders will also consider other aspects of your financial profile, including your debt-to-income ratio, employment history, and overall credit history. For example, if you have a lower credit score but a low amount of debt and a stable job, some lenders might be more willing to work with you.
Variances Among Lenders: It's essential to shop around and speak with multiple lenders. Different lenders have different requirements and risk thresholds. If one lender denies you based on your credit score, another might approve you.
Credit Issues: If you've had significant credit issues, such as bankruptcy or foreclosure, there are specific waiting periods before you can qualify for a VA loan, though these waiting periods are typically shorter than for other types of mortgages.
Improving Your Chances: If your credit score is on the lower end or if you've been denied by a lender, consider working to improve your credit before applying again. This might include paying down debts, ensuring all bills are paid on time, and checking your credit report for errors.
In summary, while the VA doesn't set a strict minimum credit score, lenders do. It's always a good idea to check your credit score well in advance of home shopping, so you have a clear idea of where you stand and if you need to take steps to improve your credit.
Still have questions? Contact one of our VA Specialists today!
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