VA loans, short for “Department of Veterans Affairs loans,” are mortgage loans specifically designed to help active-duty military members, veterans, and certain eligible spouses achieve homeownership with favorable terms and conditions. These loans are guaranteed by the U.S. Department of Veterans Affairs and are offered by approved private lenders, such as banks and mortgage companies. Here are the key features and benefits of VA loans:
- Contract Duration: Typically 35 to 45 days from offer acceptance to closing,
- Credit Score Requirements: Minimum 700, best for 740 and above.
- Down Payment: No Minimum Down payment required.
- Eligibility: Active-duty service members, veterans with honorable discharges, National Guard and Reserve members with qualifying service, and some eligible surviving spouses can qualify for VA loans. Specific eligibility requirements include meeting minimum service criteria, which vary depending on the era in which the individual served.
- Home Inspections: VA loans typically require a VA appraisal to ensure that the property meets minimum property requirements. This is different from a home inspection, which is optional but highly recommended.
- Compensation: Both lender and Borrower paid compensation