There are approximately 19.5 million veterans and 1.4 million active-duty service members in the United States today. As July 4th approaches, we wanted to take a moment to honor those who have previously served as well as those who continue to serve our country today and answer some questions we often hear about the VA loan program.
How much money do I need to have for a down payment?
Unlike other loan programs that have minimum down payment requirements, you don’t need to have a down payment to get a VA loan. However, the more money you put down, the less you’ll have to repay and the lower your monthly mortgage payment will be.
Do I have to pay PMI if I don’t put 20% down?
If you get a conventional mortgage, you need to put at least 20% down to avoid paying for private mortgage insurance (PMI). But VA loans don’t require PMI, no matter how much—or little—you have saved for a down payment.
Do I need a copy of my certificate of eligibility to apply for a loan?
Your certificate of eligibility is required to get a VA loan, but you don’t need a copy of it to apply for a mortgage. Your lender should be able to get a copy of your certificate through the VA’s automated system.
What types of VA loans can I apply for?
There are a few different types of VA loans to choose from:
- Purchase loan. You can use this type of loan to finance the purchase of your home.
- Interest rate reduction refinance loan (IRRRL). You may be able to refinance your existing mortgage to get a lower rate with an IRRL.
- Cash out refinance. You can tap the equity in your home to pay for other expenses by getting cash back when you refinance your existing mortgage.
I’ve already had a VA loan. Can I get another one?
Yes. You don’t lose your VA loan benefit if you’ve already used it to buy a house. You can use the benefit repeatedly as long as you meet the eligibility requirements and get a new loan entitlement.
If you’re interested in learning more or applying for a VA loan, give us a call today and one of our Licensed Mortgage Professionals will be happy to help.