July 29, 2014 by Leave a comment

One of the biggest worries about purchasing a home is coming up with a down payment.  If I told you it was possible to become a homeowner with 0% down would you believe me?  With a VA Loan it is.

VA Loans help eligible service members, Veterans, and surviving spouses get into the home of their dreams.  All VA Loans are offered by private lenders such as mortgage companies and banks. The VA Loan program is a great way to get into a home if you are a current or former service member with little to no down payment.

Benefits of a VA Loan  

As mentioned before, VA Loans require no down payment, and because of that they are very appealing.  This is a very significant benefit as it reduces some of the stress that comes with buying a home.  Along with having a 0% down payment, VA Loans are great because they also require no Private Mortgage Insurance (PMI).  Because PMI is required for most loans that have less than 20% down, the government backs all VA Loans and assumes the risk that the borrower may default on the loan.

In addition to 0% down and no PMI, another great benefit of VA Loans is that there are very competitive mortgage rates.   VA Loans are backed by the VA, and because of this they carry less risk.  This allows most VA Loans to typically have a 0.5 – 1% lower rate than those of regular mortgage loans.  Between not needing a down payment, no PMI, and lower interest rates, the savings of VA Loans can be very significant over the life of the loan compared to a normal mortgage.

VA Loan Eligibility

In order to qualify for a VA Loan, borrowers must fit a handful of requirements.  Some of the requirements for a VA Loan include:

  • You have served 90 consecutive days during wartime
  • You served 181 days during peacetime
  • You have 6 years of service in the Reserves or National Guard
  • You are a spouse of a service member who died in the line of duty or has a disability that is service related

In order to be eligible for a VA Loan, you must fit one or more of the criteria above.  To get a VA Loan you must obtain a Certificate of Eligibility (COE), which is a formal document that details what entitlement you have.  This certificate is issued through the Department of Veterans Affairs.  The process of getting a COE is usually quick, and you do not need it to start the loan process.

Income Requirements

Another reason that eligible borrowers are interested in VA Loans is because of the income requirements.  There is no income threshold, but you must have a stable monthly income that shows you can make the payments.  The VA requires all borrowers to have a specific amount of income left over after all monthly payments and expenses are paid.  When going through the process of getting a VA Loan, lenders will look at your credit form the 3 major credit bureaus and evaluate your debt-to-income ratio, just like with any regular mortgage loan.

VA Loans are a great option for Veterans or those currently serving and their spouses.  With 0% down and no PMI, VA Loans are a great way for those who are eligible to afford the home of their dreams.  As long as the requirements are met, VA Loans are just as easy to get as a regular mortgage.  Providing VA Loans is an excellent way to thank the men and women, and their families who have served our country.

If you or your spouse is eligible for a VA Loan contact Total Mortgage VA Loan Specialist, Thomas Bepko at 203-707-5728 for more information.


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