Veterans Administration (VA)
Welcome Home Veteran!
What is a VA loan?
VA loans are backed by the government. The lender originates the loan, but the Department of Veteran Affairs (VA) guarantees it. By reducing the risk to the lender, this allows for more flexibility in qualifying compared to a conventional loan. VA loans accept a lower credit score and higher Debt-to-Income (DTI) ratios.
The VA offers a lifetime home loan guaranty benefit to Service Members, Veterans (and in some cases their surviving spouses) and Reservists who have served for at least 6 months. VA loans tend to have more favorable terms and features not available with other programs. These include a little to no down payment option, up to 100% financing and, unlike FHA or conventional loans, there is no Private Mortgage Insurance (PMI) requirement. Loans can be used to purchase, refinance, or modify your home.
To qualify for a VA loan, you must meet the minimum service requirements, have a valid Certificate of Eligibility (COE) and meet other qualifying factors, like income and credit score minimums. A COE is a document provided by the US Department of Veterans Affairs that certifies you meet the eligibility requirements for a VA loan. For more information about COE’s and to apply for your certificate, go to: https://benefits.va.gov/benefits/
Military service members and veterans have unique mortgage needs. MiMutual Mortgage has specially trained VA lending experts that can help you every step of the way!
While it’s not necessary to have your COE BEFORE you start your loan process, you cannot obtain a VA loan without one!
It’s best to apply for your COE early in the loan process to confirm your eligibility and provide your lender with your VA Loan Entitlement. Another reason to apply for the COE early on is to avoid delays in your closing date as it may take up to 30 days for the VA to provide your COE. Once you receive it, the certificate never expires. You should note though, if you received your COE while on Active Duty, you would need to obtain a new one once you are a Veteran.
No. The COE shows you are ELIGBLE for a VA loan, but you still must meet other qualifying requirements. MiMutual Mortgage will review your entire loan profile – credit score, VA entitlement amount, residual income, loan amount, LTV and more – to determine credit worthiness.
YES! You can use your VA loan benefit many times throughout your lifetime, as long as you still meet the VA and lender requirements. Your home must be used a primary residence, however.
Yes! You can apply for a new VA loan to replace either your existing VA loan, or existing non-VA backed loan. In either scenario, you may be able to save money with a VA Refinance.
There are two options to consider:
- VA Cash Out: Tap your home’s equity for cash and get up to 90% financing. The cash can be used however you see fit! Many people choose to pay off high interest credit card debt and other liens, fund a major purchase or to have a nest egg if needed.
- VA Streamline: Refinance your current VA loan to lower your interest rate and mortgage payment with an Interest Rate Reduction Refinance Loan (IRRRL). A VA Streamline Refinance Loan offers a simplified application process, which makes it faster and easier to qualify. No appraisal is needed, no income verification requirement, less paperwork and lower closing costs!
While there is no PMI required on a VA loan, there is a funding fee. This is a one-time payment that helps to cover the cost of the loan. This fee can be paid up-front or built into the mortgage. The fee will be based on the type of VA loan, whether you a first time or repeat buyer, your down payment amount, and the total loan amount. The fee is calculated as a percentage of the total loan amount. First time home buyers who put less than 5% down will pay around 2.3% of the loan amount. If your down payment is 5% or more, the fee drops to 1.65% and at 10% down, it’s 1.4% of the total loan amount. Repeat buyers pay a slightly higher fee only if they have less than 5% down.
You are about to begin the mortgage loan application
- Applying on the MiMutual Mortgage Online Loan Application is quick, easy, and secure! The loan application will take about 25 minutes to complete.
- Once your application is submitted, you can log back into the MiMutual Mortgage Online Loan Application to securely upload requested documents, view your loan status, and communicate with your mortgage team.
- If you have questions, reach out to your MiMutual Mortgage Loan Officer.
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