What is a VA Loan?
A VA Loan (Veterans Administration Loan) is a mortgage that is guaranteed by the VA for veterans. VA loans have flexible underwriting and down payment guidelines for veterans and their spouses only.
VA loans also have low-interest rates, no mortgage insurance, and no down payment requirements for most veterans.
Primary requirements of a VA Loan:
- 100% Financing is available for most applicants
- Requires a Pest Inspection for which the borrower can not pay. Section 1 items, along with any Section 2 items that pertain to moisture or infestation must be cleared prior to closing. (In some instances an escrow hold back may be applied)
- Mortgage Insurance is not required.
- Interest rates are low
VA borrowers must have a Certificate of Eligibility (COE). Veterans can acquire their COE on the Department of Veteran Affairs website in the eBenefits portal.
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