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Home » No Down Payment » VA Loans »
VA Loans.
You Served, You Earned It!
The Zero-Down Payment Mortgage, Up To $20,000,000 for our Veterans and Current Military Personnel
VA Loans Program Guidelines
Loan Purpose
- Purchase
- One-time Close Construction Loan
- Refinance: rate-term and cash-out
Credit Profile
- 580 minimum middle credit score for all borrowers on the loan – purchase
- 620 minimum middle credit score for all borrowers on the loan – one-time close construction loan
- No foreclosure or short sale within two years of contract ratification date
- No Chapter 7 bankruptcy discharge within two years of contract ratification date
- No mortgage delinquency in the last 12 months for a VA Streamline Refinance
Loan Amount
- As low as $0 down payment with no maximum loan amount. Interest rates will be higher based on loan amounts exceeding VA High Balance limits
- If Veteran Basic Entitlement is less than $36,000 and/or Total Entitlement Charged To Previous VA Loans is more than $0, the Veteran may still be eligible for a VA Loan with a down payment as low as $0. To determine the amount of VA eligibility and if a down payment is required call for details
Funding Fee
- Funding Fee is waived for Veterans receiving VA related disability income and surviving spouses of Veterans who haven’t remarried
- Funding Fee Calculations are as follows:
| Purchase | |||
|---|---|---|---|
| Type of Veteran | Down Payment | % for First Time Use | % for Subsequent Use |
| Regular Military | None | 2.30% | 3.60% |
| 5% or more but Less than 10% | 1.65% | 1.65% | |
| 10% or more | 1.40% | 1.40% |
Ratios
- As determined by Automated Underwriting System or AUS with DTI ratios up to 65%. Requires a Desktop Underwriter “Approved/Eligible” or Loan Prospector “Accept” findings
- Manual Underwrite acceptable with DTI ratios up to 41%:
Manual Underwrite with DTI between 41% to 50% will require two compensating factors. DTI over 50% will require three compensating factors
Property Type
- Owner-occupied properties
- Existing attached and detached single-family residences
- New construction with permanent financing only
- PUD’s (i.e. Townhomes)
- Condo-units. HUD, VA, FNMA or FHLMC approved project
- Log cabin homes, provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area
Occupancy
- Owner occupied only
- All borrowers on the loan must have ownership in and occupy the property
- Non-married Partners, not permitted on the loan request
- No co-signers permitted
Property Valuation
- Full VA appraisal with interior inspection and photos
Documentation
- All loans must be fully documented per Agency Guidelines
- For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)
Down Payment/Closing Costs
- 0% down payment required
- Seller contribution toward buyers closing costs and escrows up to 6% of the purchase price
- Closing cost help can come from flexible sources including family member gifts and loans against a 401k retirement account
Terms
- Amortization period: 15, 20, 25, 30-year fixed rate
