Most veterans know that they can get a government-backed loan to purchase a home. But they don't always know how they work or how to access those benefits when they need them. Our REALTORS® want to eliminate any confusion by sharing the critical information you need to finance your new home.

• Advantages of a VA loan:
  Because the Department of Veterans Affairs backs the loan, there are no down payments required, whereas a conventional mortgage requires 20%.  No private mortgage insurance is required, reducing the monthly payment. VA loans do not require a minimum income or credit score, but lenders may deviate from that to some extent. They will likely require a credit score of 580 to 620. This is not to say a high credit rating and low debt-to-income ratio are not valuable. They may mean a better interest rate for the buyer. One fee veterans will need to pay is a funding fee of 0.5% to 3.6% of the purchase price at closing, so it is still important to compare lenders for the best option.
  
  
• Loan eligibility:
  To qualify for a VA loan, a veteran must served at least 181 days of active service during peacetime or 90 consecutive days of active service during wartime. National Guard service of six years or full-time active National Guard service of 90 days or more under Title 32 will also qualify the buyer for a VA loan. The widowed spouse of a service member whose life was lost in the line of duty will qualify for the loan if not remarried. Some exceptions may be allowed.  
  
  
• Steps toward qualification:
  • Application for a Certificate of Eligibility (COE) to show the lending company that the applicant qualifies for a VA home loan. This process can be completed online. 
  • Gather appropriate documentation for the lenders: DD214 for veterans, statement of service for National Guard and active duty personnel, NGB Form 22 for discharged National Guard, copy of your annual retirement points and proof of honorable service and discharge for Selected Reserves, and VA form 26-1817 for surviving spouses. 
  • Meet with mortgage lenders that offer VA loans. Compare two or three to discuss interest rates and funding fees. Ask for a pre-approval letter to give you and your agent a guide for your price range. 
    
    
• Other VA benefits that may affect homeownership:
  • The VA Interest Rate Reduction Refinance Loan. This allows a homeowner with an existing VA mortgage to refinance at a lower interest rate. It is sometimes called a VA streamline. 
  • Cash Out Refinance Loans are available to all veterans whether or not the original mortgage is a VA loan. Homeowners can refinance up to 90% of the value of the home without the need for mortgage insurance. 
  • VA Energy Efficient Mortgage allows homeowners to finance up to $6,000 for qualified energy-saving improvements, such as thermal windows, solar heating, and some cooling systems. 

Now that you've done your homework, it's time to contact us. We have a number of Nassau County homes for sale and Suffolk County homes for sale that we're anxious to show you. We look forward to helping you find the home of your dreams!