VA Loans: What Every Veteran Should Know Before Applying

If you served in the military, you have earned one of the most powerful mortgage benefits available — the VA loan. Unfortunately, many veterans either don’t use it or don’t fully understand it. Here’s what you need to know.

What Is a VA Loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. Because of this government backing, lenders can offer veterans significantly better terms than a conventional loan. Additionally, VA loans are available through approved private lenders — like First Commerce Financial — not directly through the VA itself.

The biggest advantages are straightforward:

• No down payment required in most cases
• No private mortgage insurance (PMI)
• Competitive interest rates
• Limits on closing costs

 

Who Is Eligible for a VA Loan?

Generally speaking, you may qualify if you meet one of the following service requirements:

• 90 consecutive days of active service during wartime
• 181 days of active service during peacetime
• 6 years of service in the National Guard or Reserves
• Surviving spouses of service members who died in the line of duty

 

To confirm your eligibility, you will need a Certificate of Eligibility (COE). We can help you obtain that as part of the application process.

VA Loan Myths — Debunked

There is a lot of misinformation about VA loans. Here are the most common myths we hear:

Myth: You can only use a VA loan once.

Fact: Not true. You can use your VA loan benefit multiple times. Furthermore, in some cases you can have more than one VA loan at the same time.

Myth: VA loans take longer to close.

Fact: With an experienced lender, VA loans close in a similar timeframe as conventional loans. As a result, you won’t lose out to other buyers because of your loan type.

Myth: VA loans are only for first-time buyers.

Fact: VA loans are available for first-time buyers, repeat buyers, and refinancers. Therefore, even if you have owned a home before, you can still use your benefit.

VA Loan Limits in FL, AZ, TX & MI

As of 2020, the VA eliminated loan limits for veterans with full entitlement. In other words, if you have never used your VA benefit or have paid off a previous VA loan, there is no cap on how much you can borrow — as long as you qualify based on income and credit.

However, if you have remaining entitlement from a previous VA loan, county loan limits may still apply. Consequently, it is important to review your specific situation before assuming there is no limit.

We work with veterans in Florida, Arizona, Texas, and Michigan. Additionally, we are familiar with the specific market conditions in each state — so we can give you accurate guidance no matter where you are buying.

Ready to Use Your VA Benefit?

At First Commerce Financial, we have helped many veterans use their VA loan benefit to buy or refinance with no down payment and no junk fees. If you are ready to get started, schedule a free call with Kirk or Ken — they will walk you through your options clearly and honestly.

No pressure. No obligation. Just straight answers.