Through what are commonly known as VA loans, the U.S. Department of Veterans Affairs (VA) provides affordable home financing options for service members, veterans and their surviving spouses. But how does someone become eligible? And what are the benefits?
Up next, we’ll learn how to get this kind of loan and why having one can be a tremendous advantage for a homebuyer or homeowner looking to refinance.
The Benefits of VA Loans
Of all the home mortgage loans available through Fairway of the Carolinas, none come with more benefits than a VA loan. For starters, nearly 90% of these home loans don’t require a down payment. That’s huge for families who might be a bit strapped for cash. Considering conventional loans generally come with a minimum down payment of 3 percent, the absence of any down payment can be a real game-changer.
On top of this, VA loans typically feature reduced closing costs and mortgage interest rates. They also don’t require private mortgage insurance (PMI) or entail any prepayment penalties. Plus, there’s financing up to 100 percent. In addition, the buyer has the option of a fixed- or adjustable-rate mortgage. For a full list of benefits, click here.
VA Loan Requirements
Fairway’s minimum credit score for VA-loan eligibility is just 600 — less than the 620 required for most conventional home loans. If your credit score is below 600, don’t sweat it, though. Fairway’s Creditool team can work with you to quickly raise your score. To be VA-loan eligible, you must also obtain a valid Certificate of Eligibility (COE). This is based on your length of military service or service commitment, duty status and character of service. To apply for a COE, click here.
The Wrap
At Fairway of the Carolinas, we couldn’t be any more thankful for veterans and active duty military members alike. This is why we partner with the American Warrior Initiative to help veterans in need. This is also why we have R.E.D. Friday. R.E.D. is an acronym for Remember Everyone Deployed, so we wear red T-shirts on the last day of the work week. Fairway of the Carolinas is proud to offer and specialize in VA home loans for Charlotte, as well as all of North and South Carolina! Visit this page or contact us to learn more. Or click below to start your VA loan application. Above all, though, we thank you for your service to our nation.
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*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency.
