Understanding VA Loans
The Veterans Administration (VA) helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. The VA provides a home loan guaranty benefit to help assist you in purchasing a home to occupy. The VA also guarantees a portion of the loan.
Purchase Loans and Cash-Out Refinance
VA loans are available for new home purchases and when refinancing an existing mortgage. General eligibility and lending criteria include:
- VA-guaranteed loans are available for homes for your own personal occupancy. To be eligible, borrowers must satisfy lender qualification requirements, demonstrate sufficient income, maintain a valid Certificate of Eligibility (COE) with available entitlement and meet applicable service requirements.
- The length of your military service or military service commitment and/or duty status may determine your eligibility for specific home loan benefits.
- VA financing options may be available for eligible borrowers, subject to VA requirements, lender guidelines and borrower qualifications.
VA Interest Rate Reduction Refinance Loan (IRRRL)
If you already have a VA loan, it's often possible to use an Interest Rate Reduction Refinance Loan to refinance an existing VA loan, subject to program eligibility requirements.
- The IRRRL is a "VA to VA" loan, meaning it can only be applied to refinance an existing VA loan. An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. We may require a current appraisal with sufficient equity to support the new loan amount.
Who Is Eligible for VA Loans?
To be eligible for a VA loan, you must be an active-duty military member or reservist or a veteran who has not received a dishonorable discharge from the service. Examples of others who could qualify include National Guard members, cadets or midshipmen at one of the service academies or an officer at the National Oceanic & Atmospheric Administration (NOAA). Surviving spouses of veterans may also meet the eligibility guidelines.
Specific service requirements include:
- At least 181 days of active peacetime service.
- Minimum of 90 days of active duty during wartime.
- At least six years of service in the Reserves or National Guard.
- You're a surviving spouse of a military member killed in the line of duty and have not remarried.
While the VA does not stipulate that borrowers have a specific minimum credit score, credit qualification requirements vary by lender, loan program and borrower circumstances. Borrowers with higher debt obligations may still qualify depending on lender requirements and compensating factors.
What Are the Benefits of VA Loans?
Qualified borrowers receive multiple benefits from a VA loan:
- Flexible financing options may be available for eligible VA borrowers.
- No mortgage insurance: VA loans generally do not require monthly mortgage insurance, subject to program guidelines.
- Access to a variety of participating lenders: Because the VA only backs but does not issue these loans, borrowers may compare available financing options.
- Lower closing costs: VA guidelines may limit certain fees charged in connection with VA financing.
- No prepayment penalties: VA loans generally do not include prepayment penalties, subject to program requirements.
Why Choose Us Over the Competition?
At Johns Creek Mortgage, LLC, we help eligible borrowers explore VA financing options through our lending partners. We also deliver exceptional service — we're a community-oriented company based in Suwanee, GA, that provides a high-touch, transparent lending experience in all communities of the states we serve.
Contact Us to Start the VA Loan Process
Discover for yourself what sets Johns Creek Mortgage, LLC apart from the competition. Contact one of our professional loan consultants today to explore your options and get answers to your questions.
Important Notice:
Johns Creek Mortgage, LLC is a licensed mortgage broker. We arrange but do not make loans. All loan programs are subject to borrower qualification, lender approval and program guidelines. Loan terms, conditions and availability are subject to change without notice.
