VC Mortgage Loans in Columbus

Getting approval for a Veteran’s Affairs (VA) mortgage can be a challenge and a large benefit for veterans and active-duty members of the US armed services. Unlike a conventional loan, VA loans do NOT require a down payment or minimum credit requirement. These mortgage loans are backed by the Department of Veterans Affairs, and recipients of VA loans can also forgo private mortgage insurance (PMI).

Eligible buyers may apply for down payment assistance totaling 2.5% or 5% of the home’s purchase price. These funds can be put toward a down payment, closing costs or other qualifying “pre-closing” expenses.

The purpose of VA mortgage loans is to make it easier for veterans and families of veterans to purchase a home. If you believe you may qualify, consider these requirements before applying:

• Active-duty military, reservists, veterans and National Guard are eligible to apply for a VA loan. Active-duty military personnel generally qualify after about six months of service
• Spouses of military members who gave their lives while on active duty or because of a service-related disability can qualify.
• Reservists and members of the National Guard can apply after six years. If called to active duty before that, eligibility is gained after 181 days of service.

VA home loans are a benefit that can be used multiple times over the duration of your lifetime. Honorably discharged veterans of the armed forces may enjoy the perks of these loans on the purchase of any primary residence for life. VA mortgage loans cannot be used to purchase a vacation home or investment property.

The VA has no minimum credit requirements for loan applicants, but the private banks that issue the loans may have their own minimum threshold. Lenders will generally want to see a credit score of 620 or higher for a VA loan. Borrowers must provide proof of income and have an acceptable debt-to-income ratio.

VA loans can be issued without a down payment, but a one-time funding fee may be required. The amount of this fee varies depending on the down payment and the veteran who is applying for the loan. An active-duty borrower applying for their first VA mortgage loan with no money down would pay a fee of 2.15% of the loan amount. The fee is reduced to 1.25% of the loan amount if the borrower makes a down payment of at least 10%.

Reservists and National Guard members can expect to pay about a quarter of a percentage point more in fees than active-duty members, while veterans and others using the VA loan program for the second time, without a down payment, would pay 3.3% of the total loan amount.

Military Veterans are also eligible for the Ohio Housing Finance Agency’s (OHFA) Ohio Heroes program. This program offers discounted mortgage rates for those who have served in the United States military. To qualify for a discounted rate through Ohio Heroes, borrowers must meet certain requirements. Take the quiz to see if you qualify for this program.

If you are a Veteran in Ohio looking for your next mortgage, Mortgage Lender Columbus is here to assist you! Our team of experts will help you collect the benefits you have earned in service to our country.