The Veterans Administration (VA) has a number of benefit programs aimed at helping our nation’s veterans and their families, including the VA home loan program. Through this program, eligible individuals can get a mortgage for a home at a competitive interest rate and with little or no down payment.
Skyline is proud to offer VA loans as part of the work we do. It benefits those who have served our country and we see it as a small way of saying thanks for their sacrifice.
The VA home loan is a guarantee for part of your loan and the VA agrees to cover a certain percentage of the loan should you be unable to pay it back.
Any veteran, active service member, and surviving spouses (in some situations) may apply for this type of loan. Applicants must have a good credit score and cannot have defaulted on any past VA guarantees.
The limits of the guarantee stand at 25% of the loan, but the limits on the overall size of the loan for which the VA can do a 25% guarantee vary according to location. As of 2014, according to the US Department of Veterans Affairs, the basic entitlement is a $36,000 guarantee per service member or up to 25% of a loan below the limits. Loan limits start at $417,000 and may vary according to location. All loan limits are subject to change.
The first step in applying for a VA home loan is to obtain a Certificate of Eligibility (COE). While lenders may have access to automatic VA approval when you submit your mortgage application, it’s always a good idea to apply ahead of time.