VA Loans

VA mortgage loans are just one of the many mortgage options offered by Park Cities Mortgage. VA loans are guaranteed by the U.S. Department of Veterans Affairs (VA). These loans are designed for active military members, veterans, and reservists, as well as spouses of deceased veterans. The VA loan program offers benefits that are typically unavailable under other mortgage options, including no down payment requirements, lower interest rates, and more liberal credit requirements.

Qualifying for a VA Mortgage Loan

To be eligible for a VA loan, a buyer must have one of the following military service records:

If enlisted after September 7, 1980:

• At least 24 continuous months of active duty, or
• The full period for which called or ordered to active duty, but not less than 90 days during wartime or 191 continuous days in peacetime

If enlisted prior to September 7, 1980:

• At least 90 days of consecutive active service during wartime
• At least 181 days of active service during times of peace

Reserves or National Guard:

• Six years of service with the National Guard or Reserves

Surviving spouses of military members who died in service are also eligible for VA loans. Eligible buyers can use the VA loan benefit on their first home purchase, as well as any purchases thereafter subject to VA eligibility.

Advantages of VA Loans

• No down payment*
• No private mortgage insurance
• VA limits the amount you can be charged for closing costs
• Sellers may pay closing costs
• No penalties for pre-payment
• Loans are assumable (as long as the person assuming the loan qualifies)
• Loan amounts above the conforming limits are allowed**
• You don’t have to be a first-time homebuyer

Disadvantages of VA Loans

• Requires a VA funding fee
• Military service requirements must be met
• For primary residences only

Who Should Get a VA Loan?

VA loans are a great option for those who are eligible. A VA loan may be a prudent option if:

• You are an active military member
• You are a military veteran
• You are the surviving spouse of a veteran
• You need a no-down-payment option*

*The no-down-payment option is only available if the sales price of your home is equal to or less than the property’s appraised value. If the sales price exceeds the appraised value, a down payment for the difference will be required.
**If the loan amount exceeds the conforming loan limits of $453,100, a small down payment will be required. The limit in any county can be found at www.benefits.va.gov/homeloans/purchaseco_loan_limits.asp.

Want to know more about VA loan requirements? You can refer to our loan options page for more information. A better option would be to contact an experienced Park Cities Mortgage loan officer for in-depth guidance and insights.