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VA specific loan programs

posted Jan 27, 2013, 11:15 PM by Massey Kouhssari

VA Loan Program

The Department of Veterans Affairs (VA) was established on March 15, 1989, succeeding the Veterans Administration.  It is responsible for providing federal benefits to veterans and their dependents.  

In 1944 the original GI Bill was established which enabled the Department of Veterans Affairs to guarantee home loans for Veterans.

All Loan Programs are offered with the best daily interest rates. 

Each program is a 30-year fixed rate mortgage. 

Standard closing time for each program is 4-6 weeks.

The VA Loan Program is $0.00 down, 100% Financed, No MI/MIP, 
and a 640 minimum credit score.   What this means to you as the home buyer is: 

  • $0.00 Down - No cash required for down payment 
     1) The only cash you may need is for your Earnest Money (which you provide to your realtor at the time your Purchase Contract is accepted.) 
      2)  Appraisal Fee (Fixed fee of $350.00) collected at the time you have an accepted purchase contract. 
These two items (earnest money + $350) will be refunded to you after closing because they are included in your loan.  So, if you had to pay $100 in Earnest Money and the fixed $350 for the appraisal, after you close on the house, you would receive a check for $450.00. 

  • 100% Financed - VA allows lenders to finance up to 100% of the appraised value of the home. 
  • No MI/MIP - MI stands for Mortgage Insurance.  MIP stands for Mortgage Insurance Premium.  This is an Insurance Policy that is required by the government for any loan program that has a down payment of less than than 20% of the sale price.  If you were going with any other loan program you would be required to pay MIP.  Because the VA Loan Program is guaranteed by the Department of Veterans Affairs there is NO MI/MIP.

  • 640 Minimum Credit Score - While The Department of Veterans Affairs does not have a minimum credit scorere quirement for VA Loans, all Investors currently have a 640 minimum credit score requirement