The VA Loan -100% Mortgage Financing

The VA loan is a great program for Veteran’s, who want to buy a house. It is one of the few available loans that truly offers 100% financing. Basically, if you served active, full time, military service for atleast 180 days, you can probably qualify for the VA home loan. Spouses of deceased vets can also qualify for this loan program.

The VA loan offers very liberal debt to income ratios. People can qualify for VA home loans with up to a 50% debt to income ratios. The VA loan has no monthly mortgage insurance, making it more affordable than FHA loans. It does have an upfront mortgage insurance of 2.15%, which is more than FHA loans, but slightly less than USDA rural housing loans. The interest rate is very comparable to conventional and FHA rates.

Greg Howell of Republic mortgage mentioned that there is a different mindset with those of the veterans administration, and regular loan approvals. The VA, wants to help get those who served our country in a house. Other loan programs are very careful that they only give loans to well qualified buyers. Income, employment, and credit requirements are not nearly as strict with VA home loans as they are with FHA and conventional loans.

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