The VA loan was introduced in 1944 as part of the Servicemen’s Readjustment Act which was developed to provide numerous benefits to veterans and their surviving spouses. The goal of the VA loan is to make homeownership easier for veterans by offering benefits such as 100% financing and no private mortgage insurance. To make this possible, the U.S. Department of Veterans Affairs (VA) guarantees home loans made to veterans who are eligible. Hunter Creek Mortgage, Inc. offers great rates on Idaho VA loans to the many veterans living throughout Boise, Meridian, and Caldwell.Veterans will find that the VA loan program provides many advantages when compared to alternative mortgage options.VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- VA regulation limits closing costs
- Up to $424,100 loan amount (certain counties may be higher)
VA Loan Limits
Eligibility will vary depending on the service status of the applicant, but fortunately, most veterans, military, and spouses of deceased military members are eligible to apply for VA loans. Veterans can apply without delay if minimum active duty service requirements are met. Active-duty members will need to complete approximately 6 months of service and those in the National Guard and reservists will need to wait 6 years before becoming eligible. If at any time they are called to active duty, they will become eligible once they have completed 181 days of service. A Certificate of Eligibility (COE) will be required by all applicants. If you are unsure about how to obtain this, one of our VA loan experts can assist you during the application process.
There is no credit score requirement for VA loans, but in most situations, lenders would ask to see a credit score of 620 or higher. Since there is no mandatory credit score requirement, at Hunter Creek Mortgage, Inc., we can be flexible with every borrower depending on their own personal circumstances. For example, a lower credit score may be approved if a borrower can provide a slightly higher down payment. Be prepared to provide information such as W-2 statements, recent paystubs, and documentation of checking accounts and savings accounts to support your application.
The VA loan program also allows current homeowners to refinance existing VA loans they may have. Homeowners in need of extra cash for expenses such as home improvements or high-interest debt consolidation can take advantage of VA cash-out refinance loans. Interest Rate Reduction Refinance Loan (IRRRL) are available to those looking to improve their current interest rate. The IRRRL is also referred to as the streamline refinance loan.
At Hunter Creek Mortgage, Inc., our goal is to help veterans throughout Boise, Meridian, and Caldwell with all of their VA purchase and refinancing needs. For more information or for any questions you may have on Idaho VA loans, contact us today.