VA Purchase
Designed exclusively for veterans and active-duty service members, VA loans offer no down payment*, competitive interest rates, and flexible terms to help make your dream of homeownership a reality.
Understanding the VA Home Loan Purchase Program
The VA Home Loan Purchase Program is a unique benefit offered to veterans, active-duty service members, and eligible surviving spouses. It is designed to make homeownership accessible and affordable for those who have served our country. Backed by the U.S. Department of Veterans Affairs (VA), this program allows qualified borrowers to purchase a home with no down payment*, competitive interest rates, and flexible credit requirements.
Unlike conventional loans, the VA loan program does not require private mortgage insurance (PMI), even with no down payment*, saving you hundreds of dollars each month. This loan can be used to buy a primary residence, whether it’s a single-family home, condo, or even a multi-family property where you plan to occupy one of the units. The goal of the VA Home Loan Purchase Program is to help veterans and service members achieve the dream of homeownership with fewer barriers and more support throughout the process.
With the help of Mutual of Omaha Mortgage, navigating the VA home loan process is simple and straightforward. Our team of VA loan specialists is here to guide you every step of the way, ensuring you maximize the benefits available to you and secure a home that meets your needs and financial goals.
Steps to Buying a Home with a VA Loan
Determine Your Eligibility
The first step in using a VA loan to purchase a home is determining your eligibility. You’ll need to obtain a Certificate of Eligibility (COE) from the VA, which confirms that you meet the service requirements. This certificate is essential for the loan application process. You can get your COE through the VA’s eBenefits portal, by mail, or with the assistance of your lender.
Get Pre-Approved for a VA Loan
Pre-approval is a crucial step in the homebuying process. During this phase, your lender will evaluate your financial situation, including your income, credit history, and debt-to-income ratio. Getting pre-approved gives you a clear picture of your budget and shows sellers that you’re a serious buyer. It also helps you identify any potential issues early on, so you can address them before you start house hunting.
Find a VA-Savvy Real Estate Agent
Choosing a real estate agent experienced with VA loans can make a significant difference in your homebuying experience. They’ll be familiar with the VA’s property requirements and can help you find homes that meet these criteria. They can also negotiate with sellers who may not be familiar with VA loans, ensuring your offer is competitive.
Start House Hunting
Once you’re pre-approved, it’s time to start looking for your new home. Keep in mind that the property must meet the VA’s minimum property requirements (MPRs), which ensure it’s safe, structurally sound, and sanitary. Your real estate agent can help you find homes that meet these standards and fit your needs.
Make an Offer and Negotiate
When you find the right home, your real estate agent will help you submit an offer. With the backing of a VA loan, you can make a strong offer without the need for a down payment. If the seller accepts your offer, you’ll move on to the next step.
VA Appraisal and Home Inspection
The VA requires an appraisal to determine the home’s value and ensure it meets the MPRs. This is not the same as a home inspection, which is highly recommended to identify any issues with the property. The appraisal protects both you and the lender by confirming the property’s worth and condition.
Underwriting and Final Approval
Once the appraisal and inspection are complete, your loan goes through underwriting. This is where your lender reviews your financial information and the property details to ensure everything meets the VA’s guidelines. If all is in order, you’ll receive final loan approval.
Closing on Your VA Home Loan
Closing is the final step in the process. During the closing, you’ll sign the necessary documents, pay any closing costs, and receive the keys to your new home. With a VA loan, your closing costs are generally lower, and you won’t have to worry about paying PMI or a down payment.
Move In and Enjoy Your New Home!
Congratulations! You’ve successfully purchased your home with a VA loan. Now it’s time to move in and enjoy the benefits of homeownership, knowing you’ve secured a great deal thanks to your service to our country.
Unique Benefits of Using a VA Loan for Home Purchase
No Down Payment Required*
One of the biggest advantages of a VA loan is the ability to purchase a home with no down payment*. This means you can buy a home without needing to save up a large amount of money upfront, making homeownership accessible sooner.
Competitive Interest Rates
VA loans often come with lower interest rates compared to conventional loans, thanks to the backing of the VA. This can save you thousands of dollars over the life of your loan, helping you build equity faster.
No Prepayment Penalty
With a VA loan, you can pay off your mortgage early without facing any prepayment penalties. This flexibility allows you to pay down your loan faster and save money on interest over time.
No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA loans do not require PMI, even with no down payment*. This can save you hundreds of dollars each month, making your mortgage payments more affordable and freeing up money for other expenses.
Flexible Qualification Requirements
VA loans have more lenient credit and income requirements, making them accessible to more borrowers. Even if you’ve had past credit issues or have a higher debt-to-income ratio, you may still qualify for a VA loan.
Assumable Loan Option
VA loans are assumable, which means that a qualified buyer can take over your loan under the same terms. This feature can be a valuable selling point if you decide to sell your home in the future, especially if interest rates have risen since you took out your loan.
Why Choose Mutual of Omaha Mortgage for Your VA Home Purchase?
No Lender Fees
We waive origination and processing fees for VA loans, saving you money at closing and making your home purchase more affordable.
VA Loan Expertise
Our VA loan specialists understand veterans’ unique needs. We guide you through the process, ensuring you fully utilize your VA benefits.
Personalized Service
We offer one-on-one support, working closely with you to understand your financial situation and find the best loan options for your home purchase.
Streamlined Process
Our technology-driven process simplifies your VA loan journey. From online applications to digital documents, we ensure a quick and stress-free homebuying experience.
Trusted Name in Home Loans
With over 100 years of experience, Mutual of Omaha is a trusted brand, dedicated to helping you achieve your financial and homeownership goals.
VA Purchase FAQs
VA loans can be used to purchase single-family homes, condos, and multi-family properties (up to four units) where the veteran will occupy one of the units. The property must be your primary residence and meet the VA’s minimum property requirements.
The amount you can borrow with a VA loan depends on your entitlement and the lender’s guidelines. While there is no maximum loan amount, the VA does limit how much it will guarantee. In most areas, the loan limit is $726,200, but it can be higher in high-cost counties.
No, the VA does not set a minimum credit score requirement, but most lenders prefer a score of 620 or higher. However, borrowers with lower credit scores may still be eligible based on their overall financial profile and ability to repay the loan.
While VA loans don’t require a down payment or PMI, there is a VA funding fee. This one-time fee helps fund the program and can be financed into your loan. The fee amount varies based on the type of loan, your down payment amount, and whether it’s your first time using a VA loan.
Yes, you can use a VA loan multiple times throughout your life, as long as you have remaining entitlement and meet the eligibility requirements. You can also restore your entitlement by paying off your previous VA loan or refinancing it into a conventional loan.
You must intend to occupy the property as your primary residence within 60 days of closing. In some cases, such as deployment or PCS orders, this requirement can be extended with proper documentation.
No, VA loans are intended for primary residences only. However, if you have used a VA loan before and paid it off, you may be able to use your remaining entitlement to purchase another primary residence.
The VA funding fee is a one-time fee paid directly to the Department of Veterans Affairs, designed to keep the VA loan program running. The fee can vary based on factors such as your down payment amount, type of loan, and whether it’s your first time using a VA loan. The fee can be financed into your loan, so you don’t have to pay it out of pocket at closing. Veterans with service-related disabilities may be exempt from the funding fee.
Additional Resources
Buyer’s Market or Seller’s Market? 10 Key Indicators Every Agent Should Track
Beyond the List Price: Understanding the True Cost of Homeownership
How to Help Clients Understand & Adapt to Market Shifts
Ready to Purchase Your Home with a VA Loan?
Take advantage of your VA benefits and secure your home with no down payment*. Our experienced loan officers are here to guide you every step of the way.
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