Another Fed rate hike is coming down the pike

Another month, another Fed meeting. And if early predictions are right, another rate hike, too.

The Federal Open Market Committee (FOMC) is set to meet September 20-21, and with inflation still well above 8%, it’s largely looking like a repeat of the last few gatherings. Remember that the Fed raised rates in its March, May, June and July meetings, with the last two notching 75-basis-point hikes — the largest increases since 1994.

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Another Fed rate hike is coming down the pike

Another month, another Fed meeting. And if early predictions are right, another rate hike, too.

The Federal Open Market Committee (FOMC) is set to meet September 20-21, and with inflation still well above 8%, it’s largely looking like a repeat of the last few gatherings. Remember that the Fed raised rates in its March, May, June and July meetings, with the last two notching 75-basis-point hikes — the largest increases since 1994.

If the Fed acts similarly again, it would mark the fifth rate increase in 2022 alone. What’s the likelihood of that happening, though? And will it trickle down to mortgage rates? Let’s take a look at the projections.

Check today’s VA rates. Start here (Sep 30th, 2022)

Experts, FOMC members on the same page

All indicators point to yet another increase in the Fed’s benchmark rate this month — and it will likely be a big one.

According to CME’s FedWatch Tool, there’s a 90% chance the FOMC will increase its rate by 75 basis points next week, which would bring the target rate up to 3% to 3.25%.

Federal Reserve Governor Chris Waller confirmed as much in a recent speech in Vienna, Austria, saying he supports a “significant” rate hike going into September’s meeting.

“Inflation is far too high, and it is too soon to say whether inflation is moving meaningfully and persistently downward,” Waller said. “I support continued increases in the FOMC’s policy rate and, based on what I know today, I support a significant increase at our next meeting on September 20 and 21 to get the policy rate to a setting that is clearly restricting demand.”

Fed Chair Jerome Powell expressed similar sentiments earlier this month, indicating that he is “strongly committed” to fighting inflation.

“History cautions strongly against prematurely loosening policy,” Powell said. “I can assure you that my colleagues and I are strongly committed to this project, and we will keep at it until the job is done.”

Mortgage rates are rising – and could increase more

So, what would that rate increase mean for mortgage borrowers? We’re actually already seeing some of its impact. When Powell and Waller make public comments that indicate a rate hike is in the cards, lenders tend to act quickly, pricing in higher rates to prepare for an expected dip in demand.

After Powell’s comments earlier this month, the 30-year mortgage rate jumped from 5.66% to 5.89%. We could see further price increases as we get closer to the meeting and beyond, too.

In March, when the Fed announced its first rate hike of the year, the average mortgage rate went from 3.76% at the start of the month to 4.67% by its end. Mortgage rates rose similarly in May and June, too.

July rates were a different story. Then, the 30-year rate rose 24 basis points in the weeks leading up to the meeting but fell slightly the day after its conclusion. This indicates that much of lenders’ reactions were felt before the meeting actually happened.

In short: Nothing’s set in stone this time around. Higher rates could be on the horizon, or we might be seeing the worst of things now. Only time will tell.

Mortgage borrowers should be proactive

The FOMC is probably going to increase its benchmark rate yet again next week, and while there’s no guarantee that means higher mortgage rates, the possibility is certainly there.

If you’re thinking of refinancing or buying a home, it might be smart to lock your rate now, before rates have the chance to rise further. If you do this, and rates drop later, you always have the option to refinance for a better rate in the future.

Make sure you shop around, too. Mortgage rates vary from lender to lender, so getting at least a few quotes can help you get the best deal possible.

Check today’s VA rates. Start here (Sep 30th, 2022)

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VA loans finance primary residences and not rental properties. So what happens when you get deployed or retire and decide to move? Do you have to sell your VA-financed home so you can buy another one?

No. Borrowers can keep their current home and buy a new home elsewhere. You could even rent out your current home to help pay for your new home.

There will be rules to follow. For example, you’ll need enough remaining entitlement to insure a second VA loan. And your VA funding fee may be higher

VA loans finance primary residences and not rental properties. So what happens when you get deployed or retire and decide to move? Do you have to sell your VA-financed home so you can buy another one?

No. Borrowers can keep their current home and buy a new home elsewhere. You could even rent out your current home to help pay for your new home.

There will be rules to follow. For example, you’ll need enough remaining entitlement to insure a second VA loan. And your VA funding fee may be higher for your second VA loan. We’ll explore all the details in this post.

Click here to see whether you’re eligible to rent your VA home (Sep 30th, 2022)

What VA loans can be used for

The VA wants its mortgage program to help veterans and active-duty military members buy their own single-family homes to live in.

That’s why the program offers such attractive benefits which make home buying easier. VA-approved lenders can offer competitive mortgage rates, require no down payment and charge no ongoing mortgage insurance premiums.

Because of these benefits — which conventional and FHA loans cannot offer — the VA home buying process requires buyers to certify they’ll live in the new home full time.

This doesn’t mean you have to buy a single-family home, though. You could buy a duplex — or even two duplexes on the same piece of property — as long as you agree to use one of the units as your primary residence.

What VA loans cannot be used for

Veterans cannot use their VA home loan benefits to buy investment properties, second homes or vacation homes. Conventional loans, which are not backed by a government agency, exist for this purpose.

However, these VA loan rules apply only to the home you’re buying. They don’t always apply to a home you already own, even if you used a VA loan to buy it.

So, if you already own a VA-financed home and need to buy another home, you can still use the VA home loan program — as long as you’ll be using the new home as your primary residence.

VA home loan occupancy rules

When you finance your new home with a VA home loan, you’ll have to follow the loan’s occupancy rules.

If you need an exception to the occupancy rules — especially if you can’t move in within 60 days because of a deployment or temporary duty station — let your loan officer know. The VA will typically allow exceptions.

VA occupancy requirement exceptions

The Department of Veterans Affairs knows that some military service members and veterans will need more than 60 days to move into their new home. The agency knows some vets may not be able to live in the home for a full year after closing.

The VA will allow exceptions to its occupancy rules if:

There’s another exception to occupancy requirements, and it can be a helpful one. If you refinance with a VA Interest Rate Reduction Refinance Loan (IRRRL) — also known as a Streamline Refinance — your lender shouldn’t require an occupancy certification.

Instead, you’ll certify that you have used the home as a primary residence for at least a year in the past. As a result, you could refinance a home using the IRRRL while you’re renting it out to a tenant.

Renting your home after a VA purchase

Let’s say you bought a VA-financed home in San Diego but will be spending the next three years at Pearl Harbor, Hawaii.

If you’ve already lived in your San Diego home as a primary residence for a year, you could rent it out while also using another VA loan to buy a new home in Hawaii. If you haven’t lived in the San Diego home for a year, you could ask the VA for an exception to its occupancy rule.

However, the VA can limit the size of your second home loan. VA loan limits no longer apply to first-time VA borrowers, but they can apply if you’re already using your VA loan benefit.

And, keep in mind that, regardless of the VA’s loan limits, your lender will limit your loan amount based on your credit score, other debts, and personal finance details.

Renting your home after a VA refinance

If you’ve recently refinanced your home using a VA loan, it may be too soon to rent it out, depending on which type of refinance you used.

The VA offers two kinds of refinance loans:

When you refinance with the VA cash-out refi, you’ll need to occupy the home for at least another year, based on the VA’s occupancy rules.

With an IRRRL, you won’t be subject to the occupancy requirement. In fact, you could refinance with an IRRRL while you have a tenant living in the home.

Click here to check your eligibility for a VA refinance (Sep 30th, 2022)

VA loans: 5 things to know about renting out your home

It is possible to rent out your VA-financed home while simultaneously buying a second home through the VA home loan program. But there are limits to know about, such as loan limits and the occupancy rules we’ve already discussed.

Here are five things to know if you’re thinking about renting out your VA loan-financed home.

1. You don’t have to refinance

It’s a common misconception. Because the VA IRRRL program does not include an occupancy requirement, some homeowners think they can get around the occupancy rules by refinancing.

Others think they’d need to refinance out of the VA loan program altogether before renting out their home.

You don’t need to do that. In fact, you should refinance only when your new loan saves money or is better for your personal finances in some other way.

Simply living in the home for a year — or asking the VA for an exception — can solve the residency dilemma.

2. It may reduce your entitlement

The VA no longer limits the size of your first loan. But loan limits do apply to subsequent uses of your VA loan benefit.

The VA will set a maximum size for your second loan. It will base your new loan amount on the size of your first loan and your location. (Areas with expensive real estate allow larger loan amounts.)

You can exceed the VA’s loan limit on your second VA loan, but only if the lender agrees and if you’re willing and able to make a down payment.

3. You can restore your entitlement

Homeowners who have paid off their VA-backed home loan can restore their full entitlement and borrow again with no loan limits.

This restoration does not happen automatically. Ask your loan officer or your contact at the VA to help restore your full borrowing power if you’ve recently paid off a loan.

4. You may need new a homeowners insurance policy

Home insurance companies offer policies that are designed specifically for investment property owners. The policy you have on a primary residence may not be enough to cover your liabilities as a landlord.

So be sure to check with your insurer as you transition from homeownership to property manager. Also, be sure to encourage — or require — your tenants to get their own renters insurance policies.

5. It can be tricky to document rental income

Tax season is more complicated for landlords. If you start earning income by renting your home, you’ll need to learn about the tax implications before you start to file next year’s taxes. A professional tax preparer can be an invaluable ally.

If you’re documenting rental income to qualify for a new mortgage, you’ll have to jump through more hoops than a typical W-2 employee would. This is a complex topic, so we’ll explore it more below.

Using rental income to buy another home

When qualifying for your second home loan, you might have trouble meeting your lender’s debt-to-income (DTI) guidelines.

DTI can be a bigger hurdle when you already have a mortgage loan out. That’s because your total monthly commitments, relative to your income, might be too high to add another mortgage payment.

To help, you can use the rental income you’ll be earning on your first home when submitting a loan application for your second home.

There is a catch to using rental income. Generally, you’ll need to earn rental income for at least two years before a mortgage lender will consider it — just like a lender typically wants to see two years of W2 forms. If you’re not yet renting out your home, you won’t meet this requirement for two more years.

However, you are allowed to use your rental income as a compensating factor, and that could be the difference between getting approved or not.

Regardless of how you end up using the rental income when applying, it should help out a lot. While the VA (and most loan programs) will accept up to 43% DTI, having multiple loans out at a time can make it difficult to keep below that level.

There are a few snags that could happen, but if you plan everything out ahead of time, there’s no reason you shouldn’t be able to rent out a home you bought with a VA loan and then use another VA loan to buy your next house.

Check today’s VA refinance rates (Sep 30th, 2022)

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Can I rent my house with a VA loan FAQs

Can I rent my house with a VA loan?

Yes. If you have a VA-financed home and you’ve used it as a primary residence for at least a year, you could convert the home into a rental house. You could also buy a second home using another VA mortgage if you agree to use the new home as your primary residence.

When can I rent my house with a VA loan?

Typical VA lenders will ask you to certify that you’ll live in your new home for at least a year. You should fulfill this agreement before turning your home into a rental house. However, you can also ask for an exception, especially when you have a permanent change of station (PCS).

How long do you have to occupy a VA loan home before renting?

You should fulfill your occupancy agreement with your VA lender. For most VA mortgages, lenders ask you to certify that you’ll live in the home for at least a year before turning the home into a rental property.

Can you use a VA loan for a rental?

While you can’t use a VA loan to buy a home that you plan to use as a rental property, you can convert a home you already bought with a VA loan into a rental home. This is an option if you have a new PCS but don’t want to sell your home.

Do I have to refinance before I can rent out my VA home?

No. You don’t have to refinance into a different loan type in order to rent out your home. VA-financed homes can work as rental homes when you’ve fulfilled your agreement to live in the home for at least a year.

How long do you have to live in a VA loan house?

You can sell your home anytime. You can also refinance out of your VA loan any time — as long as you meet your lender’s requirements for the refinance loan. But to turn your VA-financed home into a rental property, you’ll usually need to live in the home for a year first.

How long do you have to live in a VA home before you can sell?

You can sell your VA home anytime. But selling right away could be costly. Closing costs add 2% to 5% to the cost of your home, so you may need to keep the home for a few years to make closing costs worthwhile.

Does the VA check occupancy?

Unless it has a reason to do so, the VA typically does not check to see whether you’re meeting your loan’s occupancy requirement. But it’s still best to fulfill your occupancy agreement since it’s part of your VA mortgage loan’s terms and conditions.

Do I have to refinance before I can rent out my VA home?

No. You don’t have to refinance before turning your VA mortgage-financed home into a rental property. In most cases, you will need to live in the home a year before renting it out, though. One exception: When you buy a multi-unit property and live in one of the units, you can start renting out the other units right away.

Can you use your VA loan for a rental property?

No. The VA home loan program helps veterans and active-duty military members — and many National Guard members and Reservists — buy homes to use as a primary residence. A VA loan won’t finance a new rental property. But you could turn your VA loan-financed home into a rental home after you’ve lived in it for a year.

Click here to see whether you’re eligible to rent your VA home (Sep 30th, 2022)

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You’re a veteran who decided to retire. Now you can enjoy the time off and move wherever you’d like.

However, you don’t have the same type of income, and you’re worried you might not be qualified to buy a house.

Retirees are not only eligible to purchase homes, but they get some additional benefits they didn’t have when they were still employed. They might not be able to afford a home quite as large as they could before retiring, but there are still plenty of homes that are affordable

You’re a veteran who decided to retire. Now you can enjoy the time off and move wherever you’d like.

However, you don’t have the same type of income, and you’re worried you might not be qualified to buy a house.

Retirees are not only eligible to purchase homes, but they get some additional benefits they didn’t have when they were still employed. They might not be able to afford a home quite as large as they could before retiring, but there are still plenty of homes that are affordable for retirees.

Getting a VA loan as a retiree

Buying a home when you’re retired is easier when you have access to VA products. These give home buyers additional flexibility, particularly when it comes to financial matters.

To figure out if you’re eligible to purchase a home as a retiree, you’ll need to figure out your income situation and VA eligibility.

Checking your VA eligibility

If you’re retired, you don’t have to use a VA loan to buy a home. There are plenty of products available, some of which are easier to qualify for.

Veterans may want to stick with VA products, though. On top of not requiring a downpayment, VA loans have lower mortgage rates and credit score requirements. This means more flexibility for home buyers — something that’s important when money is a factor.

Most veterans are going to be eligible for the VA loan, but it depends on how long and when they served in the armed forces.

If you’re curious about your eligibility, you can learn more here.

Determining your income

For retirees, lenders will want to know they can afford to live in the home they purchase. Savings are an excellent start, but income goes a long way in qualifying.

Luckily for retirees, there are several ways you can include income even though you are no longer working.

Pension/Retirement income

One of the most obvious for veterans who are retired, your pension can be included in your income. Any other jobs that had some type of retirement income can be included as well. Savings from your 401k or IRA that started paying out work here as well.

If you’ve started collecting, Social Security can also be included in income.

Household income

A newer trend is seeing children move back in with their parents. If someone is living under your roof and working, you can include their income in the household income. Be careful with this, though – you’ll probably need to prove that they plan on living with your for at least another few years.

Rental income

Some people own a building with multiple units, or they may be renting out a room in their home. Others may have properties elsewhere that are rented out. Any income collected through rentals is considered verifiable by the VA, so you can include it in your application.

Disability

Some veterans receive disability checks for injuries sustained during their service. Others had injuries after their service that now restrict their ability to work. Disability income is a verifiable source, according to the VA.

Other sources of income

One of the nicest parts of the VA loan is that many of its guidelines are discretionary, meaning the rules can change on a case-by-case basis. If you have a different source of income that the VA doesn’t explicitly approve, there’s still a chance that your lender will allow it.

Other requirements

Retirees who have enough money to buy a home still have to meet some of the VA’s requirements. To be eligible for a loan, retirees should expect to:

These are items all VA loan users will have to cover, not just retired veterans. So, aside from proving income, there really isn’t much more to buying a home when you’re retired than when you’re working.

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4/5 stars

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4/5 stars

If you’re a nontraditional or first-time home buyer looking for a lender with a personal touch, New American Funding (NAF) may be the perfect fit for you.

One of the few national mortgage lenders to achieve top-twenty status while remaining family-owned, New American Funding offers a wide range of loan products to suit all kinds of home buyers and refinancers.

New American Funding overview

Since it was founded in 2003, this company has issued over 187,000 loans totaling over $48 billion dollars by combining a digital experience with a human touch.

Despite its size and the availability of an all-online application process, New American Funding makes sure every mortgage application is handled manually and considered by a real person.

Borrowers who are technology-averse or who simply prefer to work with an agent can choose to speak to a representative on the phone or, where available, to process their application at one of the company’s 186 active lending branches in 32 states.

Additionally, the company offers various down payment assistance programs as part of its mission to serve diverse and underserved communities.

Pros & cons of New American Funding

Though New American Funding’s customer service has earned it a stellar reputation.

The company’s customer service has won it over 7,000 five-star reviews on Zillow, though some reviewers dislike having to provide a phone number or email in order to obtain a rate quote.

More than almost anything, New American Funding is extremely user-friendly. Its website is designed to answer any questions borrowers may have, and the company offers several first-time home buyer programs.

The underwriting process involves reviewing each application on a case-by-case basis. In addition, NAF offers the choice of a total digital experience or an in-person process and promises a streamlined 14-day closing guarantee for purchases.

The company’s personalized quote system, manual underwriting and available bilingual agents have earned it the trust of a diverse clientele.

In 2019, New American Funding reported over 19% of loan volume was directed to Hispanic customers and more than 9% to Black customers. These numbers far exceed the national average of 7.85% loan volume to Hispanic and 6.22% to Black customers and reflect the company’s dedication to expanding homeownership to underserved communities.

Though NAF offers a wide range of traditional mortgage products, it is also proactive in helping those who need assistance to locate state and local programs to support its home-buying goals.

Pros of New American Funding

Cons of New American Funding

How to get a mortgage with New American Funding

Applying for a customized quote from New American funding is typically fast and easy. Those who prefer a digital experience can apply online. Otherwise, borrowers can visit one of 186 branches or fill out an application on the phone with one of its helpful, bilingual agents.

Applying online is a streamlined process with no login or registration. The borrower answers a few quick questions about the property type, their previous home buying experience, and the purchase price. The process does require that an email address is provided in order to get a rate quote.

Once the application has been submitted, New American Funding begins its underwriting process. The applicant’s credit history, employment, assets and liabilities will all be considered. If applicable, the company will order an appraisal of the property.

New American Funding will respond to the application with a list of personalized loan options, as well as information about the interest rate, points and fees, and the availability of a variety of down-payment assistance programs if needed. Documentation can be uploaded directly to the website or given to an agent in your local branch office.

Prior to the application process, many of New American Funding’s customers have used the site’s comprehensive educational material to familiarize themselves with the process and get a sense of what they are able to afford.

The site provides a mortgage calculator where borrowers can enter income and fixed expense information to determine the monthly payment they can afford, as well as to learn about the different types of loans available to them.

Buying a house with New American Funding

The entire New American Funding process is designed to appeal to first-time homebuyers and nontraditional borrowers as much as to experienced homeowners.

The availability of a one-on-one manual underwriting process can help ensure mortgage applicants are receiving the care and attention they need.

New American Funding’s home-buying mortgage products include:

Refinancing a house with New American Funding

New American Funding offers several different types of refinance mortgages, including a cash-out option, which allows homeowners to convert their home equity to cash.

VA mortgage holders may be eligible to refinance with the VA Interest Rate Reduction Refinance Loan (IRRRL) or the VA cash-out refinance, both of which can lower their interest rate.

The IRRRL, sometimes also called a VA Streamline Refinance, process is simplified and offers access to lower rates and monthly mortgage payments without the need for income verification or an appraisal.

Though guidelines from the VA allow up to 100% loan-to-value for VA cash-out loans, New American Funding caps these loans at 90%.

Whatever your objectives for refinancing, the knowledgeable agents at New American Funding can make sure you’re using the refinance product best suited to your needs.

Special perks for veterans with New American Funding

New American Funding is proud to provide exceptional service to eligible VA loan applicants.

The special perks available for qualified VA borrowers include negotiable interest rates, down payment assistance and the ability to finance or reduce the VA funding fee.

Active-duty personnel assigned to permanent duty within the United States and not living in government housing can take advantage of the Basic Allowance for Housing (BAH) which can be paid toward a mortgage.

New American Funding’s agents work hard to ensure those who served have full access to all of these special benefits.

Community involvement

New American Funding has made a commitment to Black Homeownership, creating opportunities and helping to bridge the racial wealth gap. To that end, it established the New American Dream Initiative which offers education, accessibility to credit, and mortgage career awareness to underserved communities.

Additionally, the company has formed a Listening Circle forum providing a safe place for employees to take action on racial and social injustices. The program is intended to create actionable solutions to increase Black employment and leadership opportunities.

New American funding summary

Borrowers looking for a wide range of loan options offered through a fast and friendly process will find New American Funding a solid choice.

Though the company’s fees may run higher than competitors in some cases, its high-tech and personal approach will appeal to first-time buyers and experienced borrowers alike.

The bottom line

4/5 stars

Wells Fargo is one of the nation’s largest mortgage lenders, with branch offices throughout the United States. Its mortgage experts are available by phone and online. The bank offers a wide range of VA loan programs and provides personalized support to match borrowers with the right home loans.

Consumers

The bottom line

4/5 stars

Wells Fargo is one of the nation’s largest mortgage lenders, with branch offices throughout the United States. Its mortgage experts are available by phone and online. The bank offers a wide range of VA loan programs and provides personalized support to match borrowers with the right home loans.

Consumers looking to purchase or refinance a home will find a full menu of fixed-rate and adjustable-rate loans. Wells Fargo posts updated rates daily to its website, alongside a variety of resources including loan calculators and homeownership guides.

Well Fargo overview

Since its founding in 1852, Wells Fargo has grown into one of the country’s largest financial institutions, serving approximately 1 out of every 3 Americans.

Wells Fargo’s popularity extends to its mortgage business, too: it was the second-biggest residential mortgage lender in 2020 after Quicken Loans.

Pros & cons of Wells Fargo

All Wells Fargo mortgage loan applicants are assigned a Home Mortgage Consultant to provide guidance through the lending process. Customers can use Wells Fargo’s yourLoanTracker to review, submit and sign documents as well as to track the status of their loan application in real-time.

Pros of Wells Fargo

Cons of Wells Fargo

How to get a mortgage with Wells Fargo

Wells Fargo’s mortgage application is generally easy to complete and can be submitted in person, online or by phone.

Once an application is submitted, a Wells Fargo lending expert will review the borrower’s employment and credit history, as well as income, assets, and existing debts. To assess the value of the home, Wells Fargo will order an appraisal of the property.

Once an applicant’s loan is reviewed and approved, Wells Fargo will offer a variety of programs for the borrower to consider – including fixed-rate and adjustable-rate loans. Approved loan applicants can then select from a variety of interest rates, points, and fees to find the loan structure best suited to their needs.

Any additional documentation can be submitted either through an online portal or via overnight mail.

In addition to expert support, Wells Fargo offers a number of online tools to help borrowers.

Customers have access to several online calculators, including one to compare fixed-rate and adjustable-rate programs, one to estimate interest savings with a refinance loan, and one to determine the potential savings from purchasing discount points.

Buying a home with Wells Fargo

Wells Fargo’s Home Mortgage Consultants help applicants move through all steps of the lending process — from application to closing — as efficiently as possible.

Wells Fargo’s home buying mortgage products include:

Refinancing a home with Wells Fargo

Refinancing can enable homeowners to lower their monthly payments, convert from an adjustable-rate to a fixed rate, or shorten the term of their loan. Many homeowners are able to benefit from their homes’ appreciation and refinance to take cash out of their equity.

Wells Fargo’s refinance mortgage options include VA, FHA, Jumbo and Conventional loans with a variety of terms (fixed rate, adjustable rate, 30 years, 20 years, 15 years, etc.).

For VA homeowners, Wells Fargo offers a 100% VA cash-out loan — meaning you may be able to cash-out all your home equity, provided you qualify for the new loan.

Wells Fargo also offers VA Interest Rate Reduction Refinance Loans (IRRRL) with no income or asset approval required and no-appraisal options. These programs provide tremendous value for VA-eligible borrowers.

Wells Fargo experts work with borrowers through all steps of the refinancing process – from application through closing.

After a refinance loan application is approved, borrowers can identify a location and date for closing their loan and Wells Fargo will prepare all closing documentation.

Special perks for veterans with Wells Fargo

Wells Fargo has been supporting military veterans and their families for more than 160 years.

Its mortgage team includes experts who understand the unique needs of service members and their families. As a result, Wells Fargo can often provide a high level of customer support to veteran loan applicants.

Wells Fargo also offers additional benefits to active-duty service members and veterans including:

Community involvement

Wells Fargo’s dedicated team of Military Talent Liaisons are committed to recruiting, counseling, and advocating for military job seekers. Wells Fargo is a proud supporter of Hiring our Heroes, the U.S. Chamber of Commerce Foundation’s nationwide initiative to help veterans, transitioning service members and military spouses to find meaningful employment opportunities.

Additionally, since 2016, Wells Fargo and Scholarship America® have collaborated on the Wells Fargo Veterans Scholarship Program and the Wells Fargo Veterans Emergency Grant Program. Both programs are intended to support veterans with postsecondary education. Over the last five years, Wells Fargo and Scholarship America have awarded 137 scholarships and 233 emergency grants.

Should you use Wells Fargo?

As one of the largest mortgage lenders in the nation, Wells Fargo offers a wide variety of home lending programs at competitive rates. Those seeking a reliable, efficient lender will be well served to consider Wells Fargo.

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4.5/5 stars

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4.5/5 stars

Veterans United ranks as a top performer for VA mortgages because of its competitive rates, highly regarded customer service, and the extra ways this lender assists military personnel who want to buy a home.

If you’re considering Veterans United for your mortgage, read our review to learn more about what it’s like to work with this lender.

Pros & cons of Veterans United

Pros of Veterans United

Cons of Veterans United

Working with Veterans United

To get a mortgage loan from Veterans United, first check your eligibility on their website. When you’ve qualified, you can make an offer on the home you want, and your real estate agent or loan officer will help you through that process.

Although the VA doesn’t require a home inspection, Veterans United suggests you get one. When you’ve locked down a purchase, you can start the loan application online with their easy process:

With Veterans United, you can complete some of the application, save it, and return later to complete it.

If you have a question or need technical assistance, Veteran’s United’s call centers remain open 24 hours a day, seven days a week. In addition, this lender employs Client Advocates who can also help you.

Anyone who prefers the person-to-person touch or is technology-averse should know that Veterans United only has 25 brick-and-mortar branches nationwide. These are associated with and located in states that have active-military bases.

Even though you can get a VA loan with zero cash down, you will have to pay a VA funding fee up front. Most applicants choose to roll that fee into the loan so they don’t have to come up with it in cash.

Depending on the size of the down payment (if you plan to make one) and whether or not you’ve used a VA loan before, this fee runs between 2.4% and 3.6% for a home purchase.

Buying a home with Veterans United

Perusing through Veterans United’s website and social channels, you discover quickly that they take great pride in putting Veterans in homes.

Numerous testimonials from real customers praise VU’s attention to Veteran-specific needs during the home buying process.

Just one example is Veterans United Realty, an independent affiliate partner, has a nationwide network of agents who specialize in working with Veteransveterans.

Veterans United will link you to a licensed agent in your community. These people are familiar not only with the VA loan process, but also with military buyers. To become a part of this network, these agents have been pre-screened for their high degree of customer service, buyer satisfaction, and experience with home buyers.

Before thinking about building the home of your dreams, you should know that Veterans United doesn’t work with VA construction loans. Most lenders don’t. However, what you can do is get a construction loan either from a builder or another lender. When the home is completed, qualified Veteransveterans can then change that short-term construction loan into a VA mortgage with Veterans United.

Veterans United also lends for new modular homes, which are usually built on a site using prefabricated sections. They treat an existing modular home like a stick-built home. But Veterans United doesn’t finance mobile homes.

How to get a mortgage with Veterans United

To get a mortgage loan from Veterans United, first check your eligibility on their website. When you’ve qualified, you can make an offer on the home you want, and your real estate agent or loan officer will help you through that process.

Although the VA doesn’t require a home inspection, Veterans United suggests you get one. When you’ve locked down a purchase, you can start the loan application online with their easy process:

With Veterans United, you can complete some of the application, save it, and return later to complete it.

If you have a question or need technical assistance, Veteran’s United’s call centers remain open 24 hours a day, seven days a week. In addition, this lender employs Client Advocates who can also help you.

Anyone who prefers the person-to-person touch or is technology-averse should know that Veterans United only has 25 brick-and-mortar branches nationwide. These are associated with and located in states that have active-military bases.

Even though you can get a VA loan with zero cash down, you will have to pay a VA funding fee up front. Most applicants choose to roll that fee into the loan so they don’t have to come up with it in cash.

Depending on the size of the down payment (if you plan to make one) and whether or not you’ve used a VA loan before, this fee runs between 2.4% and 3.6% for a home purchase.

Refinance with Veterans United

Qualified homeowners can refinance their homes in two different ways with Veterans United: either a VA Cash-Out Refinance or a VA Streamline (IRRRL) Refinance. With a Cash-out refinance you can take advantage of your home’s equity and access cash for any number of things. Use the money for home improvements, emergencies, to pay off debt, or any other purpose.

Strange as this may sound, you don’t have to take the cash when you refinance with a VA Cash-Out Refinance. Instead, qualified Veterans with a loan type other than a VA can use this benefit to get a lower mortgage rate, escape an adjustable-rate loan, or get rid of expensive mortgage insurance.

Veterans United also offers a VA Streamline Refinance, also called an Interest Rate Reduction Refinance Loan or IRRRL, with no income or asset verification and without an appraisal on the home you wish to buy. For Veterans who currently have a VA loan, this option lets you lower your interest rate and decrease your monthly payments. Some homeowners can get this type of refinance without an appraisal.

More benefits for Veterans

Veterans United offers qualified Veterans savings in the form of a Homebuyer Select Discount. This discount equals one percent of your total loan or an average savings of $2,150.

On their website, Veterans United posts a fairly comprehensive list, by category of where military members receive discounts for products and services. Those categories include apparel, automotive, hardware, insurance, restaurants, sporting goods, storage, and more.

Education, in the form of calculators, guides, videos, and more, is showcased on the Veterans United website. If you don’t find the answer you’re looking for there, you can reach out to customer support 24/7.

Veterans United also offers other loan products besides the traditional VA loan:

Lighthouse Program

During military service, finances can easily go awry. You can fall behind on credit card payments or other bills. Even though VA loans have more flexibility and lower credit score requirements than other types of loans, the road to obtaining a mortgage can be rough for those with low credit scores. Veterans United wants to help Veteransveterans overcome any obstacles encountered on the path to homeownership including those associated with your credit scores.

Veterans United will introduce you to their Lighthouse Program, if your credit score prevents you from securing a loan. This free service provides you with a personal credit consultant who will assist you in identifying and correcting any errors on your credit report. It will also give you the tools you need to strengthen your overall credit profile and assist you in setting the goals needed to reduce your debt.

Lighthouse has worked with thousands of Veterans and service members and got them to the point where they can close on the home of their dreams.

Veterans United gives back to the community

Veterans United does more than lend money to Veteransveterans who want to buy a home. Their non-profit charity, Veterans United Foundation, was created to enhance the lives of Veteransveterans and military families. In conjunction with their partners, the foundation provides a transitional community for homeless Veteransveterans, prosthetic limbs, cancer treatment and travel costs, doing whatever it can to give back to veterans. It also exists to help the communities Veterans United serves.

Money raised for the foundation comes from employee contributions which are matched dollar-for-dollar by Veterans United Home Loans.

When it comes to helping Veterans, it’s not just a matter of the company writing a check. More than 90 percent of the employees donate one percent of their salaries. Sometimes they become the ones helped by the foundation.

Veterans United Foundation also gives away a scholarship biannually so military members and their families can get the education they want and deserve. Since 2012 the foundation has given more than $450,000 to 100 students.

Besides assisting Veterans, and getting them into homes, Veterans United is a Military Friendly Employer and has earned that designation every year for the past six years. Employers must fill out a survey that gauges their commitment, determination and accomplishments in creating sustainable and meaningful opportunities for military personnel. The completed survey, public data sources, and information from veterans themselves affect which companies are deemed Military Friendly.

Veterans United is a much sought-after employer as indicated by its showing in Fortune Magazine’s list of “100 Best Companies to Work For” in 2020. It came in at No. 17 and has ranked on this list for the past five years.

One dream a lot of people share is to someday own a boat. Boats can be used for both living and recreation, and plenty of boat owners are happy with their purchase.

The biggest downside to purchasing a boat is the cost associated; aside from any fees you need for upkeep and storage, boats can cost a lot of money upfront. The total cost of the boat only increases as the boat gets larger as nicer.

It isn’t uncommon for people to secure financing to help afford a boat. Financing can be a safer

One dream a lot of people share is to someday own a boat. Boats can be used for both living and recreation, and plenty of boat owners are happy with their purchase.

The biggest downside to purchasing a boat is the cost associated; aside from any fees you need for upkeep and storage, boats can cost a lot of money upfront. The total cost of the boat only increases as the boat gets larger as nicer.

It isn’t uncommon for people to secure financing to help afford a boat. Financing can be a safer way to spend money, since most people don’t have the type of cash necessary to make that kind of purchase sitting around. If they do, it can be dangerous to dip too far into those reserves.

When it comes to borrowing money, it’s tough to beat VA loans. Can you use your VA loan eligibility to buy a boat?

Click here for today's VA rates (Jul 27th, 2022)

Can you buy houseboats/RVs?

If you’re eligible for a VA loan, then you’re able to purchase property to live in. A common question many VA home buyers have is if they can use their VA loan to buy a houseboat or an RV. After all, both may be recreational, but they can also be used as a permanent living space.

Unfortunately, the VA does not allow you to use the program to purchase a houseboat or RV. The catch is that your purchase has to be real estate, meaning property needs to be involved. Since both of these types of homes are mobile, they don’t fit the VA’s requirements.

Securing funding for a houseboat or RV can be difficult regardless of what type of loan program you use. Instead of looking to live in your purchase, you could always buy a boat solely for recreational purposes – something you can do through the VA.

Getting a boat with a VA refinance

Not all VA homeowners know this, but there are two types of VA refinance. The first is the IRRRL, which is the most commonly used refinance program the VA offers. The IRRRL is used to lower rates, saving veterans money on their loan.

The other refinance offered is the VA cash-out refinance. This program can also lower your mortgage rates, much like the IRRRL. But the ultimate difference is that you can take equity of your home with a cash-out refinance.

Any cash that you take out of your house is yours, and you can spend it on anything you want – including a new boat.

Check today's VA rates (Jul 27th, 2022)

VA cash-out refinance eligibility

Veterans that are eligible for a VA loan but used another product – such as FHA or conventional – are still eligible to refinance with the VA. In some cases, homeowners are even eligible to refinance through a VA refi even if they aren’t eligible with other programs.

But you can’t take out as much cash as you want. You can only receive cash worth the total equity of your home. This means that if you have $50,000 in equity, you can take out up to $50,000 in cash.

Keep in mind that you don’t have to take out the full amount available. If you have a boat in mind, it’s best to take out a lower amount of cash so you can still have equity in your home. This will help keep your monthly payments lower.

So, while you can’t directly get a boat with a VA loan, there are ways for you to make your dream purchase using products offered by the VA.

Check today's VA cash-out refinance rates (Jul 27th, 2022)

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4.5/5 stars

_{MilitaryVALoan.com may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.}

The bottom line

4.5/5 stars

nbkc Bank (National Bank of Kansas City), based in Kansas City, Missouri, was founded in 1999 as an FDIC-insured financial institution. As an online bank with branches in Missouri and Kansas, this privately held organization offers a wide range of mortgage programs in all 50 states and takes great pride in its customer service.

This lender, which stylizes its name “nbkc” in all lower case, was the 2020 winner of Best Company’s Consumer Choice award for Best Mortgage Lender in the United States, has received an A+ rating as one of the top 200 banks in the country, and is rated A+ by the Better Business Bureau. Consumers seeking a mortgage to purchase a home, or to refinance their home, will find a robust menu of fixed rate and adjustable rate mortgage loans available from nbkc.

Pros & cons of nbkc

With more than 20 years of experience serving their customers, nbkc has designed a unique platform to support their borrowers’ needs through every step of the mortgage origination process.

All mortgage loan applicants are assigned a specific point of contact to provide guidance, along with the support of an entire team of dedicated professionals. In addition, nbkc offers competitive interest rates and fees — along with state-of-the-art technology to save time and money for their consumers.

With an average customer rating of 4.9 out of 5 points, nbkc receives very high marks for the quality of their products, their level of customer service, and their degree of trustworthiness. 94% of all nbkc customers would recommend the bank’s services to a friend. Also, nbkc leverages a centralized operation and low costs to pass substantial savings along to their customers.

Pros of nbkc

Cons of nbkc

How to get a mortgage With nbkc

nbkc’s streamlined application process begins with an application — completed either online or by phone. Once the application is submitted, an nbkc representative will reach out to help facilitate the next steps.

This will include reviewing employment and credit history, along with the borrower’s income, assets and liabilities.

An appraisal of the property will be ordered by nbkc to assess the value of the home. If the loan is for the purchase of a home, nbkc loan experts will work with the borrower’s representatives to order title insurance on the property.

Once an applicant’s loan is reviewed and approved, nbkc will offer a variety of programs for the borrower to consider – including fixed-rate and adjustable-rate loans. Approved loan applicants will then select the interest rate, points and fees best suited to them. Any additional supporting documentation can be submitted either through an online portal or via overnight mail.

nbkc will work with the borrower to arrange for settlement and the closing of the loan.

In addition to providing the support of loan experts, the bank also offers mortgage applicants many tools to help them throughout the process. Customers have access to several online calculators, including one to compare fixed-rate loans to adjustable-rate programs, a calculator to estimate interest savings with a refinance loan, and one to determine whether it’s worthwhile to pay additional points in return for a lower interest rate on a loan.

Buying a house with nbkc

In a fast-paced real estate market, it pays to have a lender like nbkc that can provide customers with quick loan decisions. The lender can issue a preapproval or pre-qualification for a mortgage online or over the phone.

Whether buying a primary residence, second home or investment property, nbkc offers a wide selection of mortgage loans to meet various home buyer needs.

Loan experts assist mortgage applicants through every step of the process to ensure customers can move from application to closing as quickly as possible.

nbkc’s home buying mortgage products include:

As mentioned,nbkc can issue a mortgage prequalification to customers shopping for a home.

A prequalification tells borrowers the price range of home they can afford. This helps home buyers to focus only on homes within their budget.

nbkc also offers a mortgage pre-approval. This is a verified pre-qualification reflecting the amount of mortgage loan for which the applicant has been approved. This is a substantial advantage when making an offer on a home, as home sellers will clearly know and appreciate the creditworthiness of the buyer.

Refinancing a house with nbkc

With interest rates near historic low levels, many existing homeowners are refinancing their mortgages to lower their monthly payments, shorten their loan term, consolidate debt and/or take cash out of the equity in their home.

nbkc offers refinancing options to help borrowers achieve their objectives efficiently, with streamlined documentation programs available for some homeowners.

Mortgage loan professionals are available to provide customers with assistance in selecting the best loan option — both online and by phone.

nbkc’s refinance mortgage options include VA, FHA and Conventional loans with a variety of terms (fixed rate, adjustable rate, 30-years, 15-years, etc.). For VA homeowners, nbkc does not offer a 100% VA cash-out loan (75% maximum loan-to-value). However they do offer VA Interest Rate Reduction Refinance Loans (IRRRL) with no income/no asset and no appraisal required.

Once a refinance loan application is approved, borrowers can determine where and when they would like to close their loan and nbkc will work with them to schedule a loan settlement at the borrower’s convenience.

Special benefits for veterans with nbkc

nbkc provides a high level of customer support to veteran loan applicants. The bank’s VA benefits include loans available in all 50 states, no VA application, origination, underwriting or processing fees, and low, competitive interest rates.

nbkc’s representatives will explain eligibility requirements for a VA Loan Certificate, determine how VA’s residual income requirements apply to a borrower’s underwriting review, and share special VA program information designed for borrowers with a disability as a result of their service.

VA borrowers may also be eligible to take advantage of VA’s seller concessions policy, allowing for home sellers to contribute larger amounts of funding toward closing costs.

Eligible veterans and their family members may also qualify for exemption from VA’s funding fee or for grants for disabled veterans.

VA grant programs include Specially Adapted Housing (SAH), for the building or remodeling of a home with disability-related modifications and Special Housing Adaptation (SHA) for the adaption of an existing home already owned by the veteran or a home the veteran intends to purchase.

nbkc gives back to the community

nbkc is a proud partner of Military Makeover, a Lifetime network program that enlists designers, contractors, landscapers and other home improvement professionals to transform the homes and lives of military families across the country.

This lender has selected Kansas City-area military families to become beneficiaries of home makeovers on the show.

Should you use nbkc?

As a customer-centric mortgage originator and servicer, nbkc offers their customers a streamlined mortgage process that saves time and money. The company’s wide range of mortgage programs, competitive interest rates and award-winning customer service makes it a great option for consumers shopping for a loan to buy a new home or to refinance an existing loan.

When most people buy homes, they have to use financing — or a mortgage — to afford it. Traditionally, a 20 percent downpayment has been required in able to qualify to buy a home, meaning 80 percent of the home is financed.

However, these days, plenty of loan programs allow home buyers to purchase a home with as little as three percent down, leaving 97 percent of the home financed through a mortgage. Other programs, like the VA loan, go even further — home buyers can finance 100 percent of the

When most people buy homes, they have to use financing — or a mortgage — to afford it. Traditionally, a 20 percent downpayment has been required in able to qualify to buy a home, meaning 80 percent of the home is financed.

However, these days, plenty of loan programs allow home buyers to purchase a home with as little as three percent down, leaving 97 percent of the home financed through a mortgage. Other programs, like the VA loan, go even further — home buyers can finance 100 percent of the home price with no downpayment required.

If VA home buyers can get a loan worth the entire value of the home, is it possible to get a mortgage worth more than the value of the home? It turns out yes, but only in certain conditions.

Check today's VA loan rates (Jul 27th, 2022)

Finding your home’s value

Before a lender will finance your home and approve your mortgage, they’ll want to know the value of your home. To do this, they use a VA appraiser to assess the home’s value.

VA appraisals are well-known for being more in-depth than other types of home appraisals, but that’s a small price to pay when you can end up financing the entire value of the house. But the outcome of the appraisal is going to have a big impact on how you buy the house.

Let’s say you want to purchase a home. You and the seller agree on $250,000, so you take the number to your lender. They’ll send an appraiser to check the value of the home — and this can affect your loan eligibility.

If the appraiser comes back and says the home is only worth $230,000, your lender isn’t going to be willing to approve your loan of $250,000. In this specific instance, you cannot borrow more than the home value. You’ll be forced to negotiate for a lower price with the homeowner or find money to make up the additional $20,000.

But, if the appraiser comes back and agrees the home is worth $250,000 or more, then you’re in business.

Financing more than your home’s value

Your lender is only going to allow you to finance 100 percent of the home’s value with a VA loan. But there are additional fees involved with closing. For example, you’ll be forced to pay a funding fee upon closing, usually around 2-3 percent of the value of the loan.

Here’s a perk of VA loans: your lender will allow you to finance the funding fee as well.

So, technically speaking, you can borrow up to the value of the home and the funding fee. For first time home buyers, the funding fee is 2.15%. Add this to the value of the home and you can get a VA loan worth 102.15% of the home’s value.

The additional costs of the funding fee will be added to your monthly payments.

Check today's VA loan rates (Jul 27th, 2022)

Borrowing more than your home value with a VA refinance

You don’t need to be buying a new home to borrow more than your home’s value.

If you currently own a home and want to refinance, you can borrow over 100% of the home’s value — but only in specific circumstances.

With a VA streamline refinance, you can borrow your home’s value plus an additional $6,000. However, that additional money needs to go to specific areas.

Some of the areas you can put the money include:

The goal with this is to improve the home not just cosmetically but through efficiency. Making these changes can help reduce the costs of your energy bills as well. These changes are also available to normal VA loan home buyers.

Also, some streamline refinancers may be able to add their discount points to the refinance as well. Discount points are used to help get you a better rate, so by financing your discount points, you may be sacrificing a better rate. But this would allow you to refinance over 100% of your home’s value.

Check today's VA refinance rates (Jul 27th, 2022)

Plenty of eligible homebuyers don’t know what the VA loan is, which is unfortunate because this is one of the best home loan products available.

A lender who specializes in VA loans will be able to help you evaluate how a VA loan fits your specific situation, but here we’ve tackled the most common VA loan questions and answers.

Who is eligible for VA loans?

Most veterans and active duty service members are eligible. However, all veterans, active-duty service members and National

Plenty of eligible homebuyers don’t know what the VA loan is, which is unfortunate because this is one of the best home loan products available.

A lender who specializes in VA loans will be able to help you evaluate how a VA loan fits your specific situation, but here we’ve tackled the most common VA loan questions and answers.

Who is eligible for VA loans?

Most veterans and active duty service members are eligible. However, all veterans, active-duty service members and National Guard members must meet certain requirements.

To be eligible, you must have met at least one of the following:

Also, VA loans are available to the surviving spouses of military members who died in the line of duty.

How is a VA loan different from conventional or FHA loans?

For one, the VA loan is guaranteed by the Department of Veterans Affairs. This is similar to FHA loans which are backed by another government organization. Conventional loans aren’t backed by anyone.

Another difference (and it’s a big one) is VA mortgage rates tend to be much lower than both FHA and conventional rates. In October of 2019, 30-year fixed-rate VA loans closed with an average interest rate of 3.68%, as compared to 3.94% and 3.98% for FHA and conventional, respectively.

How much can I borrow with a VA loan?

Previously, the VA loan program required borrowers to make a down payment on any loan that exceeded conventional loan limits.

But not anymore.

As of January 1, 2020, borrowers who are eligible for mortgage loans can get any size loan with no down payment. There are no official limits.

But remember, you’ll still have to qualify for the mortgage.

If you’re looking for an extra-large VA loan with no down payment, make sure you have a solid income and excellent credit score.

What credit score do I need to qualify?

Technically, there is no minimum credit score to qualify for VA loans. However, most mortgage lenders will want to see a credit score of at least 620 before approving the mortgage. In some cases, VA home buyers can get approved with scores below 620.

Do I need to make a down payment?

One of the biggest benefits of the VA loan is no down payment is required. The VA guarantees the mortgage, so you can secure 100% financing. It’s also possible to finance some of the closing costs or get the upfront costs covered by the seller.

Not only is it possible for VA home buyers to avoid a down payment, but it’s a popular option as well. In October 2019, the average VA loan down payment on a home was just two percent. Down payments aren’t required, but they can save you money on your monthly payments.

Do I need to pay mortgage insurance?

Another benefit of having the VA guarantee the mortgage is you don’t have to pay mortgage insurance. Private mortgage insurance (PMI) or mortgage insurance premiums (MIP) are required for smaller down payments on conventional and FHA loans. But no matter how much you put down on a VA loan, you won’t have additional insurance payments on top of your mortgage payments.

How long is the VA loan process?

There’s no set-in-stone time limit for how long the VA loan process takes, but it does take slightly longer than other programs on average.

In June 2021, the average VA loan closed in 55 days, according to the June 2021 Ellie Mae Origination Report. By comparison, the average conventional loan closed in 48 days and the average FHA loan closed in 54 days. So, for the most part, a VA loan will take slightly longer than other loan types, but not by much.

Can I only use a VA loan once?

If you’re eligible for the VA loan, then you’re eligible for your entire life. Plenty of home buyers end up using the VA loan more than once, mostly because it’s arguably the best loan program out there.

You can be eligible to use your VA entitlement benefit again for a new loan if:

How long does getting pre-qualified take?

Pre-qualifying is quick, and it can be started online.

If you’re interested in becoming a homeowner at any point in the future, then getting pre-qualified is a good idea. You can get pre-qualified even if you don’t have a house in mind, or if you haven’t even started looking. A pre-qualification will give you a better idea of how much home you can afford, so you should do this before you start shopping around.

How do I get proof of eligibility?

A certificate of eligibility (COE) demonstrates to your lender that you’re entitled to VA home loan benefits.

It’s straightforward to obtain via the VA’s website. Veterans will need to upload their DD214 form. If you’re still serving, you’ll need a statement of your military service signed by your “adjutant, personnel office, or commander of the unit of higher headquarters.”

However, it’s easier to get your lender to do this for you. If you provide your DD214 or statement of service, then the lender can get your COE directly from the VA on your behalf.

What kind of home can I buy with a VA loan?

Like other loan programs, VA loans have rules about what you can and cannot buy. VA loans are intended to provide veterans and service members with a primary residence. That means they can be used to purchase a single-family house, a townhouse or an apartment. Beyond this, the rules get more complicated.

You cannot use a VA loan to purchase a vacation home or second house or investment property. You can purchase an apartment building with up to four units, but one of the units must be your primary residence.

Mobile homes can be financed with a VA loan, but qualifying can be tricky. And you cannot use a VA loan to purchase real estate in a foreign country.

Can I rent out a home I purchased with a VA loan?

As noted above, VA loans are meant to get veterans and service members into homes so they can’t be used to purchase rental properties.

However, if you’re moving, you don’t necessarily need to sell your existing home if you have a VA loan on it. You can keep your home and rent it out, even with an existing VA loan on it.

There are two ways to do this: 1) Depending on how much equity you’ve accrued in your existing home, you may be able to refinance with a VA streamline refinance (IRRRL) or a conventional loan and get a one-time VA entitlement restoration. Your VA benefit is restored in full and you can get another VA loan for your next home. Or, 2) If your current home was inexpensive, you may have remaining entitlement left over. In that case, you can apply any remaining entitlement towards a new home.

What is a VA appraisal?

A VA appraisal evaluates whether the home is worth what you’re willing to pay for it. Your lender will order the appraisal, but the appraiser will be an independent, licensed appraiser who is approved by the VA.

The appraiser will assess the condition of the property, making sure it has:

What’s a VA funding fee?

The VA funding fee is an upfront, one-time payment determined by your loan amount and your service history, among other factors. The funding fee typically ranges from 0.50% to 3.60% of the loan amount.

This is small compared to the home loan cost savings veterans enjoy, but it allows the VA loan program to be self-sustaining, rather than using taxpayer dollars or funds from other VA benefit programs.

Can I finance my VA funding fee?

The VA funding fee can be financed into your loan to reduce out-of-pocket expenses, but remember this will add to your overall loan balance.

Is a VA loan always the best option for service members and veterans?

Not necessarily. There is no one-size-fits-all loan. The best choice for you will depend on the specifics of your situation. For example, if you’re making a down payment of 20% or more, a conventional loan might end up being less expensive.

Talk with a loan officer who specializes in VA loan products to evaluate your options and find the best fit for you.

You’ve served your country, and as a token of appreciation, there is a home loan for active-duty service members and Veterans. Military home loans are also known as VA home loans, VA mortgages, military housing loans, or military mortgages.

All of these terms refer to a special program that allows eligible military members and retirees to buy a home with zero down payment.

These loans are issued by private lenders or mortgage companies and guaranteed by the Department of Veterans Affairs.

You’ve served your country, and as a token of appreciation, there is a home loan for active-duty service members and Veterans. Military home loans are also known as VA home loans, VA mortgages, military housing loans, or military mortgages.

All of these terms refer to a special program that allows eligible military members and retirees to buy a home with zero down payment.

These loans are issued by private lenders or mortgage companies and guaranteed by the Department of Veterans Affairs. Compared to other loan types, military home loans are easier to qualify for and have better interest rates — and that’s just the start of the great benefits.

Military Home Loan Advantages

No Down Payment Required. With just about any other loan type, homebuyers have to come up with between 3.5% and 20% of the purchase price for the down payment. When buying a house for $250,000, that’s at least $8,750 and as much as $50,000 you would have had to save for.

No Monthly Mortgage Insurance. Unlike FHA loans or conventional loans, military home loans don’t require monthly mortgage insurance payments. In some cases, that’s a savings of hundreds of dollars per month. Use that money to qualify for a bigger home, put toward savings, or pay down your loan principal.

Lenient Credit Requirements. Military home loans don’t require a perfect credit score to qualify. In many cases, the lender can approve loan applicants who have previous bankruptcies, late payments, or other credit blemishes. The important part is that you’ve shown a good credit history recently and explain any previous credit challenges.

Lower Cash Reserves. With many loan types, lenders require you to have enough cash in the bank to pay for two months of mortgage payments, after paying for loan closing costs. But with a military mortgage, no such requirement exists. You just need enough to cover closing costs, and that’s it.

Limited Home Loan Closing Costs. The VA limits how much you can be charged in closing costs on your military home loan. For instance, you can’t be charged more than a 1% loan origination fee. Also, the escrow fee must be paid for by the seller of the home. See a complete list of estimated VA closing costs.

Easier Refinance Options. If you already have a VA home loan, you can refinance with very little documentation with a VA streamline refinance, also sometimes called an Interest Rate Reduction Refinance Loan (IRRRL). If you don’t have a VA loan currently, you may be eligible for a VA cash-out loan of up to 100% of your home’s current value. This is great for those who don’t have any equity in their home, or need cash for other purposes.

Military Home Loan FAQ + How to Start

How do I get started?

You don’t have to know your eligibility status or credit score to start. VA lenders have access to tools that can check those things for you. Veterans or active-duty military who think they may be eligible only need to initiate the process by completing a short online request. The rest of the process is guided by VA lenders who have helped thousands of eligible veterans purchase and refinance property.

How do I know if I’m eligible for a military home loan?

You have to meet certain eligibility requirements. Basically, you have to have served in the military a minimum amount of time. Generally, that’s 90 days if still on active duty, two years if now retired, or 6 years in the National Guard or Reserves. See complete details on VA home loan eligibility.

What documentation will I need?

For your initial call with a VA mortgage specialist, you don’t need anything. He or she will ask you some quick questions to see if you qualify for the VA loan benefit. Start here. As the loan process progresses, you’ll need things like paystubs, bank statements, and possibly your DD-214.

Are military home loan rates low?

Yes. Mortgage interest rates are typically lower for those applying for a VA home loan. That’s because the U.S. government insures the mortgage, and military mortgages have the lowest default rates of any loan type. So lenders are willing to give low VA mortgage rates to eligible members of the military.

What’s a Certificate of Eligibility (COE)? Do I need one for a military home loan?

The COE is a form issued by VA showing whether or not you’re eligible to participate in the program. You do need a valid COE to qualify for a military VA mortgage loan. Your lender will order the COE for you, and review it to check your VA loan eligibility.

How much can I borrow with a military mortgage?

VA home loan limits are quite generous. In most areas of the country, you can borrow up to $417,000 with no down payment, and up to $1 million+ in some high-cost areas. The VA sets no limit on the size of the VA loan. However, you must pay a 25% down payment on the portion that’s over the VA guarantee, usually $417,000. Read more about VA jumbo loans.

How much cash on hand do I need to buy a home with a military home loan?

The answer varies greatly. You don’t need any money for a down payment unless your home price is above VA loan limits. However, you are responsible for VA loan closing costs. Those average 1% – 3% of the loan amount on bigger loan amounts. But they can be between 3% and 5% of a smaller home’s price. According to VA loan guidelines, the seller is allowed to help the buyer with up to 4% of the home’s price in closing cost assistance. So you could buy a home even if you have no money in the bank if the home seller is willing to cover your costs. Speak to your real estate agent about your chances of receiving seller closing cost assistance.

Can I use a VA loan to buy an investment property?

The VA loan program is intended to help those with military service to purchase primary residences and become homeowners, not to purchase second homes or rental properties. There are occupancy requirements for VA borrowers.

There are some rare circumstances under which you may be able to get a second VA loan. Learn more here.

What’s the VA funding fee?

The VA funding fee is 0.5-3.3% of the home loan amount. The percentage depends on whether you’re using your entitlement for the first time and type of loan. This fee allows the VA home loan program to be self-sustaining and offer loans with zero down payment and no private mortgage insurance (PMI). It’s added to the total loan amount so you won’t be required to pay it out of pocket at closing.

You can learn more about the VA funding fee here.

Military Home Loan Rate Quotes Available Here

If you have military experience and would like to know whether you’re a qualifying VA borrower, complete a short online form.

We’ll let you know if you qualify, or what you still need to become eligible. If you qualify now, we’ll give you a rate quote, the home purchase price you qualify for, and your estimated monthly payment. From there, we’ll issue a pre-approval so you can start house shopping and make your homeownership dreams a reality.

Ready to get started? Click here to request a VA home loan rate quote (Jul 27th, 2022)

VA loans are backed by the U.S. Department of Veterans Affairs. Borrowers who are eligible for a VA loan may be eligible for a joint VA loan.

To apply for a joint VA loan, at least one of the applicants must meet the military service obligations or be an unmarried widow or widower of a qualifying military member.

Let’s take a closer look at what a joint VA loan is and what to consider before applying.

Check your eligibility for a joint VA loan. Start here (Jul 11th, 2022)

VA loans are backed by the U.S. Department of Veterans Affairs. Borrowers who are eligible for a VA loan may be eligible for a joint VA loan.

To apply for a joint VA loan, at least one of the applicants must meet the military service obligations or be an unmarried widow or widower of a qualifying military member.

Let’s take a closer look at what a joint VA loan is and what to consider before applying.

Check your eligibility for a joint VA loan. Start here (Jul 11th, 2022)

What is a joint VA loan?

A joint VA loan is a VA-backed home loan for a military borrower and an additional co-borrower (or co-borrowers). At least one of the borrowers must meet the military service requirements or be an unmarried widow or widower of a qualifying veteran.

Not all borrowers on a joint VA loan need to meet the VA loan service requirements. However, if multiple borrowers do meet the service requirements, they can also apply their VA entitlement.

When to use a joint VA loan

A joint VA loan is a useful option for military homebuyers. Here’s when it might make sense to use a joint VA loan:

Ultimately, a joint VA loan is a good option for households with at least one VA-eligible borrower that want to pool their resources for a home purchase. Since many households have more than one income earner, applying for a VA loan together can put homeownership within reach.

It’s important to note that you don’t need a joint VA loan if you are applying for a VA loan as a married couple. For the purposes of the VA loan, a veteran’s spouse is counted as the same entity as the veteran. So, as long as one of the spouses has the required military experience, they are eligible for a regular VA loan. A spouse borrowing with a VA-eligible borrower can use their income to boost the veteran’s income on the loan application.

Different types of joint VA borrowers

When it comes to joint VA loans, there are two types of borrowers:

How to qualify for a joint VA loan

If you want to move forward with a joint VA loan, you’ll need to start by qualifying. Here’s what you’ll need to do:

Pros and cons of a joint VA loan

As with all home loans, a joint VA loan comes with some advantages and disadvantages to consider.

Here’s a look at the pros:

Now for the cons:

Joint VA loans & VA entitlement

VA loan entitlement is the basis of the VA home loan. The Department of Veterans Affairs offers lenders a guarantee to repay the entitlement amount if a borrower defaults on their loan. It’s the maximum amount that the VA is willing to guarantee on the loans made by lenders to qualifying veterans.

Most veterans and military members qualify for the full entitlement when taking out their first VA loan. Even if it’s their second VA loan, they may have a full entitlement if they’ve repaid their first VA loan in full.

If applying for a joint VA loan, not all of the military members on the loan have to use their full entitlement.

How do joint VA loans differ from other VA loans?

The biggest difference between a joint VA loan and other VA loans is the list of applicants for the loan. If military borrowers are applying for a loan together, it shouldn’t impact the process too much.

But if a military borrower is applying with a non-military borrower, then the non-military borrower will likely need to meet additional requirements. For example, the VA will only guarantee the VA-eligible borrower’s portion of the joint VA loan. This means that the non-military borrower will need to come up with a down payment of 25% (equivalent to the guarantee offered by the VA) for their portion of the loan.

Is a joint VA loan right for you?

VA home loans offer a number of valuable benefits for eligible borrowers. In many cases, it’s likely to be your best home loan option.

But a joint VA loan isn’t the right option for everyone. Since many borrowers consider the lack of a down payment requirement one of the best VA home loan benefits, giving that up to add a non-military borrower might not be worth the upfront costs.

And remember, a joint VA loan is just one type of loan. Other popular loans include FHA loans and conventional mortgages.

Check your eligibility for a VA loan. Start here (Jul 11th, 2022)

Joint VA loan FAQ

Can a non-citizen jointly be on a VA loan?

In some cases, non-citizens can be on a VA mortgage. But it varies based on the situation. The non-citizen must be legally able to reside in the U.S.

Can you buy a house jointly with a VA loan?

Yes, you can buy a house jointly with a VA loan. At least one of the borrowers must meet the military service requirements to qualify for a VA loan.

How does a joint VA loan work?

A joint VA loan works in a similar way to the VA loan. Multiple applicants with the necessary military qualifications can apply together. Or the military borrower can apply with a friend or family member.

What is a joint VA loan?

A joint VA loan occurs when two or more people apply for a VA loan together. It is one of many loan options for home buyers.

Who can be on a VA loan together?

A borrower with the appropriate military eligibility can apply for a VA loan with their spouse. If seeking a joint VA loan, the co-borrowers can be other VA-eligible borrowers or non-military borrowers.

Can I put my girlfriend or boyfriend on my VA home loan?

You can put your unmarried partner on your VA home loan. However, if your boyfriend or girlfriend is not also VA-eligible, then they’ll need to make a downpayment for their portion of the loan.

Does the VA allow a co-signer?

You can get a co-signer for a VA loan if they live in the house with you.

Can an unmarried couple apply for a joint VA loan?

Yes, an unmarried couple can apply for a joint VA loan together. But the process will look different from a regular VA loan. Notably, there will be a down payment requirement involved.

Are VA loan limits different with a joint VA loan?

When applying for a joint VA loan, the loan amount you qualify for may be more than if you applied on your own. That’s because the income and entitlements of other borrowers might be pooled.

Check your eligibility for a joint VA loan. Start here (Jul 11th, 2022)

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For qualifying veterans and active-duty service members, the VA loan can be a great deal.

One of the most significant benefits of a VA loan is the zero down payment requirement. Still, some VA borrowers choose to make down payments.

Let’s explore the requirements and practicalities of making a down payment for a VA loan.

See if you’re eligible for a VA home loan. Start here (Jul 11th, 2022)

What is a VA loan?

VA loans are backed by the U.S. Department

For qualifying veterans and active-duty service members, the VA loan can be a great deal.

One of the most significant benefits of a VA loan is the zero down payment requirement. Still, some VA borrowers choose to make down payments.

Let’s explore the requirements and practicalities of making a down payment for a VA loan.

See if you’re eligible for a VA home loan. Start here (Jul 11th, 2022)

What is a VA loan?

VA loans are backed by the U.S. Department of Veterans Affairs. Home buyers with qualifying military experience can access the many benefits of a VA loan, including no down payment requirement, lower interest rates and no private mortgage insurance. Existing homeowners with VA eligibility can also use the VA loan program to refinance and cash out home equity.

Is a down payment required for a VA loan?

VA loans generally don’t require a down payment. As long as you meet the VA’s military service requirements then you usually won’t have to make a down payment on the loan.

There are a couple exceptions, however. You may be required to make a down payment on a VA loan if you have an existing VA mortgage that’s not paid off or if you’re borrowing above conforming loan limits. In addition, someone buying with a non-VA-eligible partner may need to make a partial down payment. Your lender can help you understand the VA loan down payment requirements in these special circumstances.

Why make a down payment on a VA loan

Although a down payment isn’t required, some choose to make one anyway. Here are a couple of reasons some VA borrowers choose to make a down payment:

An upfront down payment can be a challenge for any budget. But if a down payment is within your reach, it could give your future budget more flexibility.

Why VA loans don’t require a down payment

VA loans don’t require a down payment because the Department of Veterans Affairs insures a portion of every VA loan issued by private lenders. This level of insurance means that if the borrower defaults on the loan, the federal government will pay back an agreed-upon portion of the loss.

With this guarantee in place, lenders can confidently lend to approved borrowers without a down payment requirement.

Pros and cons of making a down payment on a VA loan

Every financial decision comes with advantages and disadvantages. Here are some of the points to consider when deciding whether to make a down payment for a VA loan.

Pros of a down payment for a VA loan

The pros of making a down payment for a VA loan include:

Cons of a down payment for a VA loan

The cons of making a down payment for a VA loan include:

When do VA loans require a down payment?

Although it’s not the norm, the VA loan requires a down payment in some cases. Here’s when to expect this cost:

No down payment is one of the most significant VA loan benefits and it’s rare that you’ll need to make one — unless you want to.

Down payment for a VA loan FAQ

Do you need a down payment for a VA loan?

The VA home loan program doesn’t require a down payment for most loans. However, you’ll need to be a current or former military service member who has met the service requirements to tap into this no down payment loan.

What is the down payment for a VA loan?

There is no down payment requirement for a VA loan. Most VA borrowers can close on their new home purchase without making a down payment. However, keep in mind you’ll still have to cover upfront closing costs out of pocket unless the seller agrees to pay them for you.

Can I put 20% down on a VA loan?

Although there is no down payment requirement for a VA loan, you can make one if you choose to. Depending on your financial situation, you might decide to put 20% down on a VA loan.

But a VA loan is just one of many loan options. If you are able to put 20% down on your home purchase, conventional loans are another option to consider. The 20% down payment will eliminate any PMI obligations. Plus, you can avoid the VA funding fee.

Am I eligible for a VA-backed purchase loan?

If you are an active-duty service member or veteran, then you’ll need to meet specific service requirements to qualify for a VA-backed purchase loan.

Eligible VA homebuyers must have served 181 days of active duty during peacetime, 90 days of active duty during wartime, or six years in the Reserves or National Guard. Surviving spouses may also qualify for a VA loan if their military spouse was killed in the line of duty and they haven’t remarried since.

If you think you are eligible for a VA loan, you’ll need to obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. With this documentation, you can pursue a VA mortgage loan through a lender.

Why might I want a VA-backed purchase loan?

A few reasons to pursue a VA home loan include the lack of down payment requirements, no private mortgage insurance (PMI) premiums, relatively lax credit score requirements, reasonable closing costs, and attractive mortgage rates.

Additionally, VA homeowners can pursue a cash-out refinance option in the future. As a first-time homebuyer, this ease of access to your home equity is another great feature.

Each of these reasons makes the VA purchase loan an attractive opportunity for eligible home buyers. But keep in mind that a VA loan is only available for eligible veterans seeking a primary residence.

See if you’re eligible for a VA home loan. Start here (Jul 11th, 2022)