VA LOAN FAQ
U.S. Department of Veterans Affairs loan financing is available to eligible veterans to purchase a primary residence. The VA protects the lender in the case that the VA borrower defaults and does not make their mortgage payments. The VA guarantees the loan but, is not the actual lender. The VA loan is provided by a private lender.
- No down payment up to $453,100 (for El Paso County). With a larger loan amount, a small down payment is required
- No mortgage insurance premiums
- No penalty for early pay-off
- Limits on closing costs
- When you sell your home, your VA loan is assumable by another qualified VA borrower
- Only two-year wait to apply for a loan after bankruptcy
- Credit score of 620 or more.
- If the borrower is unable to make payments on the mortgage, the VA can help by negotiating with the lender on their behalf.
- You can go directly to www.ebenefits.va.gov/ebenefits-portal to determine entitlement and access their Certificate of Eligibility.
- Your VA lender can guide you through your eligibility and can also obtain the actual Certificate of Eligibility for you.
- First VA loan with 0% down payment: 2.15%
- First VA loan with 10% down payment: 1.25%
- Second VA loan with 0% down payment: 3.3%
- Active Duty – A statement of service signed by the adjutant, personnel office or commander of the unit. There’s no particular form for this, but it must be printed on military letterhead.
- Reserve and Guard (honorably discharged) – NGB Form 22, Separation and Record of Service or an annual retirement points summary.
- Veterans – DD Form 214, Certification of Release or Discharge from Active Duty.