VA Loan in Atlanta, GA
A VA mortgage is a home financing solution supported by the government, designed for Veterans, active-duty personnel, and their bereaved partners. Although these loans originate from private financial institutions such as banks and mortgage firms, they don’t come directly from the Department of Veterans Affairs.
These VA-backed mortgages come with attractive interest rates and conditions, suitable for acquiring standalone homes, condos, properties with multiple units, factory-built residences, or newly built structures.
How does a VA loan work?
VA loans work in a similar manner to a conventional home loan, but with a few unique advantages. For the majority of VA loan applicants, a down payment isn’t mandatory. Yet, there can be financial advantages to making one. By putting money down, you can decrease the VA funding fee and also reduce your loan principal. A smaller loan means less interest over time and quicker equity accumulation.
Unlike many civilian loan programs that often mandate mortgage insurance (a safety net for lenders if borrowers default, leading to foreclosure), VA loans stand out in that they don’t necessitate such insurance.
In terms of closing costs, VA loan providers have a limitation – they can only levy a 1% fee of the total loan amount. This makes VA loans more cost-effective compared to many other loan options. In contrast, neither FHA nor conventional loans offer such limitations on origination or lender-associated fees. It’s not uncommon for lenders serving both veterans and the general public to charge approximately 1% merely for the origination fee, with additional charges possibly applying for services like application processing, underwriting, or loan management.
What Types Of VA Loans Are There?
Various VA loans exist, each boasting its own set of benefits and limitations. To find the one that aligns with your needs, it’s crucial to analyze their characteristics and compare.
Dive into a brief overview of some available VA loan choices:
Standard VA Mortgage
Commonly referred to as either a standard VA mortgage or a VA jumbo mortgage, this is the typical mortgage type you might associate with VA loans. It provides potential homeowners the opportunity to buy properties without needing a down payment. Often, the conditions you get with a standard VA mortgage are more favorable than those of a regular mortgage from a private lending institution. However, it’s important to remember that specific terms can differ among lenders, and in some cases, especially with a VA jumbo mortgage, a down payment might still be necessary even though the Department of Veterans Affairs doesn’t mandate it.
Like many mortgage options, the standard VA mortgage allows borrowers to pick between adjustable and fixed interest rates.
VA Home Improvement Loan
The VA home improvement loan is tailored for those who want to buy and then renovate a house or just fund home refurbishments. It operates in a similar vein to the standard VA loan but focuses on the modification and restoration of homes. It’s worth noting, however, that only a limited number of lenders provide this particular loan option.
VA Loan Eligibility
To be eligible for a VA loan, you must present a Certificate of Eligibility (COE) to your lender. To get this certificate, you need to show evidence of your military service and complete the necessary documents related to your specific military division. You have the option to apply online through the VA’s official website or download and fill out a COE application form. If you utilize the eBenefits portal, you can get your COE verification in mere minutes. However, if you opt for the mail-in method, it usually takes about 4 to 6 weeks to receive your COE.
To qualify for a VA home loan, veterans and current military personnel need to fulfill specific service duration and service character criteria. Additionally, certain widowed spouses might be entitled to VA loan benefits.
Those in active service, veterans, National Guard members, and Reservists may all be potential candidates, including a few other specialized categories.
In general, VA loan eligibility is based on:
- You have completed at least 90 days of active duty service.
- You have at least six years of service in the Reserves or National Guard .
- You have served at least 181 days of active duty service during peacetime.
- You have 90 days of cumulative service under Title 10 or Title 32. For Title 32 service, at least 30 of those days must have been consecutive.
- You’re the spouse of a military service member who died in the line of duty, or as a result of a service-related disability.
Your Trusted Atlanta Mortgage Lender
Since launching in 1909, Mutual of Omaha has consistently been a pillar of reliability for our valued clientele. Deeply ingrained in community values, we wholeheartedly commit to genuine care, responsibility, and enhancing the financial wellness of those we serve. Establishing sincere, long-lasting relationships is at the core of our philosophy. As a Mutual institution, we don’t merely track market shifts; we’re passionate about guiding our customers towards their financial aspirations. For those eyeing homeownership or mulling over refinancing, we’re thrilled to offer VA Home Loans, making the process straightforward and hassle-free. Mutual of Omaha Mortgage is always here to support you. We don’t just view loans as mere transactions; to us, they represent the path to dreams, ambitions, and cherished moments. Before diving into the specifics of fixed-rate mortgages, understanding your personal goals is our top priority.