VA Loan - Oakstar Funding

VA Home Loans

A VA home loan isn’t just a “loan” it’s a benefit provided to our current and former military service members. The VA loan is guaranteed in part by the US Department of Veterans Affairs and offers more favorable terms than loan types. Active duty, veteran, and surviving spouses are all eligible for VA loans.

What is a VA home loan?

VA loans are home mortgages backed by the Department of Veterans Affairs (VA). This entitlement helps military service members and veterans become home owners at a lower cost than most other loan products.

VA loans offer zero dollar down payment options, lower credit score requirements, lower interest rates, and do not require mortgage insurance.

VA Loan Eligibility

To be eligible for a VA loan you must meet at least one of the following minimum service requirements:

You have served 90 consecutive days during wartime
You have served 181 days during peacetime
You have served more than 6 years in the National Guard or Reserves
You are the spouse of a service member who died in the line of duty or as a result of a service-related disability.

The best way to determine if you’re eligible for a VA Loan is to request a VA Certificate of Eligibility (COE).

Benefits of a VA Mortgage:

No Down Payment

A VA mortgage loan requires no money down at closing.

No Mortgage Insurance

Even with no down payment, VA loans do not require mortgage insurance. The VA guarantees your loan, thereby avoiding this monthly expense.

Lower Monthly Payments

VA loans typically come with lower interest rates than other mortgages. Borrowers also save by eliminating monthly mortgage insurance premiums.

Reusable

You can use your VA benefits more than once. If you sell your home, you may be able to get your full VA benefits reinstated to be able to secure another VA loan.

VA home loan requirements and qualifications:

Military Service – To be eligible for a VA loan, you must be an active-duty or former member of the armed forces that has met the VA loan service requirements.
Certificate of Eligibility (COE) – This document is provided to you from the VA and will show that you are eligible for a VA loan and will confirm your entitlement amount.
Primary Residence – VA loans are intended for your primary residence and cannot be used for second homes or investment properties.
Loan Amount – The VA loan limit is equal to the conforming loan limit. In 2022 that limit is $647,200 for a single-family home in all Texas counties.
VA Funding Fee – The VA charges an upfront VA funding fee paid directly to the VA. If you are a disabled veteran through the VA and have a 10% or more disability the VA will waive this funding fee.

VA loans are an excellent option for those who qualify. If you don’t meet the qualifications for a VA loan, FHA loans offer similar advantages, including lower down payment requirements.