VA Loans 101
VA loans offer exclusive benefits to veterans and active-duty service members. With no down payment* and competitive rates, discover how a VA loan can make homeownership more affordable and accessible for you.
What is a VA Loan?
A VA loan is a mortgage program specifically designed for U.S. veterans, active-duty service members, and eligible surviving spouses. It is backed by the U.S. Department of Veterans Affairs (VA) and offered by private lenders, like Mutual of Omaha Mortgage. VA loans come with numerous benefits, such as no down payment* requirement, competitive interest rates, and no private mortgage insurance (PMI). This program aims to make homeownership accessible and affordable for those who have served our country, helping them achieve the dream of owning a home.
VA loans offer more lenient credit and income requirements compared to conventional loans, making them an ideal choice for those who may not qualify for other types of financing. With the VA’s backing, lenders can provide more favorable terms and ensure that more veterans and military families have access to homeownership.
Why Choose Mutual of Omaha Mortgage for a VA Loan?
We’re committed to serving those who have served our country. Here’s why you should choose us for your VA loan needs:
No Lender Fees
We waive origination and processing fees for VA loans, making your homebuying process more affordable.
Lower Interest Rates
Our VA loans often come with lower interest rates compared to conventional loans, helping you save money on your monthly mortgage payments.
No Down Payment Required*
With a VA loan, you can finance 100%** of your home’s purchase price, which means you don’t have to worry about saving up for a down payment.
No Private Mortgage Insurance
Unlike conventional loans, VA loans don’t require PMI, even with little to no down payment*. This can save you a significant amount each month.
Generous Realtor Rebate
Eligible veterans can take advantage of our realtor rebate program, providing additional savings at closing.
VA Home Loan Service Eligibility Requirements
To qualify for a VA loan, you must meet certain service requirements. A COE (Certificate of Eligibility) for VA loans is a document that verifies a veteran’s eligibility for a VA-backed loan. Here’s a breakdown of what you need:
Active-Duty Service Members: At least 90 consecutive days of active-duty service.
Veterans: At least 90 days of active-duty service during wartime or 181 days during peacetime.
National Guard and Reserve Members: Six years of service, or 90 days of active-duty service under Title 10 or Title 32, with at least 30 consecutive days under Title 32.
Surviving Spouses: Spouses of veterans who died in the line of duty or due to a service-related injury may be eligible.
Mutual of Omaha Mortgage can help you obtain your COE, and get started with the VA application process.
Steps to Apply with Mutual of Omaha Mortgage
Submit Your Application
The best way to get started with a new home purchase or a refinance, is to start by applying for your new loan. This can be done online or directly through your loan officer. Your loan officers will work with you to collect necessary documents, such as pay stubs, tax returns, and your COE. Our team will guide you through this process to ensure all required information is provided.
Obtain Your Certificate of Eligibility (COE)
You’ll need a COE to apply for a VA loan. We can help you request this from the VA or you can apply for it directly through the VA’s website.
Receive a Loan Estimate
You’ll receive a loan estimate that details the terms of the loan, including the interest rate, monthly payments, and closing costs. This document helps you understand what to expect financially.
Home Appraisal and Underwriting
We’ll order a VA appraisal to ensure the property meets the VA’s minimum property requirements. Our underwriters will then review your application and financials to confirm your eligibility.
Loan Approval and Closing
Once your loan is approved, we’ll schedule a closing date. At closing, you’ll sign the final documents, pay any closing costs. For a new home purchase, ownership of the home will officially transfer to you. For a Refinance, the new mortgage will replace your existing one (any cash-out funds will be allocated to you).
VA Loan FAQ
A VA loan is a mortgage program backed by the U.S. Department of Veterans Affairs, designed to help veterans, active-duty service members, and eligible surviving spouses achieve homeownership. To qualify, you must meet specific service requirements, such as:
- 90 consecutive days of active-duty service during wartime.
- 181 consecutive days of service during peacetime.
- Six years of service in the National Guard or Reserves.
- Be the spouse of a service member who died in the line of duty or due to a service-related injury.
No, one of the significant benefits of a VA loan is that it typically does not require a down payment. This allows eligible borrowers to finance 100% of the home’s purchase price, making homeownership more accessible without the need for a large upfront payment.
While the VA itself does not set a minimum credit score requirement, most lenders prefer a credit score of 620 or higher to qualify for a VA loan. However, some lenders may offer loans to borrowers with lower credit scores based on other financial factors such as income stability and debt-to-income ratio.
VA loans offer several unique benefits:
- No Down Payment: You can purchase a home with 0% down.
- No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans do not require PMI, even with no down payment.
- Competitive Interest Rates: VA loans often have lower interest rates than conventional loans, which can save you money over time.
- Lenient Qualification Requirements: VA loans offer more flexible credit and income requirements, making it easier for veterans and service members to qualify
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Yes, VA loans can be used multiple times throughout your lifetime, as long as you meet the eligibility requirements and have remaining entitlement. You can also restore full entitlement by selling the home and paying off the VA loan in full, or by refinancing the VA loan into a conventional loan.
The COE is a document that verifies your eligibility for a VA loan. You can obtain your COE through the VA’s eBenefits portal, by mail, or with the help of a VA-approved lender like Mutual of Omaha Mortgage. We can assist you in obtaining your COE during the loan application process.
There is no maximum loan amount for VA loans; however, there is a limit to how much the VA will guarantee. In most counties, the VA loan limit is $726,200, but it can be higher in areas with a higher cost of living. For well-qualified borrowers, Mutual of Omaha Mortgage offers VA loans up to $1.5 million.
No, VA loans are intended for primary residences only. You must certify that you intend to occupy the property as your primary residence. However, if you’ve used a VA loan before and paid it off, you may be able to use your remaining entitlement to buy another home.
While VA loans do not require a down payment or PMI, there are still some costs to consider:
- VA Funding Fee: This one-time fee helps fund the VA loan program. It can be financed into the loan or paid at closing. The amount varies based on your down payment and if it’s your first-time use.
- Closing Costs: These may include appraisal fees, title insurance, and lender fees. However, the VA limits what lenders can charge, and some costs can be negotiated with the seller
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