Veterans Mortgage of America is a VA Approved Lender | NMLS ID 3117

VA Loan Eligibility

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The dedicated men and women who proudly serve in the U.S. military are entitled to a wide range of benefits available to them. One of these benefits is the VA Loan Program. This is an alternative mortgage option to traditional lending options which provides an incredible advantage to active duty, retired military , and qualified reserve and national guard men and women as well as their families.

This program allows the purchase or refinance of a loan for qualifying veterans or active duty personnel with absolutely zero down, no private mortgage insurance (PMI), very low rates and relaxed credit guidelines.

VMA offers you an incredible opportunity to purchase your dream home with programs designed specifically to make purchasing a new home or refinancing an existing VA Loan affordable and easy! Learn more about your eligibly for these programs in the sections below.

You may be eligible if you meet one of the following conditions:

In order to qualify for a VA Loan there are specific service conditions each borrower must meet. This must include just ONE of the following:

  • You have served 90 consecutive days of active service during wartime
  • You have served 181 days of active service during peacetime
  • You have more than 6 years of service in the National Guard or Reserves
  • You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

If you have any specific questions about your particular situation, we would welcome the opportunity to speak with you about it.

Application Process

A new Certificate of Eligibility (COE) is required. we can take your old Certificate of Eligibility to show the prior use of your entitlement and we can update your certificate of eligibility.

Loan Limits

VA does not set a cap on how much you can borrow to finance your home. The law changed in 2020 that allows VA to guaranty a loan up to 25% of the loan amount for a Veteran that has no use shown on their COE.

The basic entitlement available to each eligible Veteran is $36,000. If the COE shows previous use that has not been restored, this will affect the amount of money an institution will lend you without a possible down payment. These county loan limits are the amount a qualified Veteran with partial entitlement remaining after subtracting any unrestored use may be able to borrow without making a down payment. The loan limits vary by county based on average home sales in that area.

VA Refinance Eligibility

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An IRRRL can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.

Additionally:

  • A Certificate of Eligibility (COE) is not required. When we order your new loan, VA will provide a new registration and loan number and show your prior use.
  • No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
  • You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller if you assumed the loan.
  • The occupancy requirement for an IRRRL is different from other VA loans. For an IRRRL you need only certify that you previously occupied the home.

VA Loan Income Requirements

Those looking to purchase a new home are not required to reach an income threshold to take advantage of the VA Loan Program.  Be aware however that borrowers are expected to have a reliable source of income that will cover mortgage payments plus remaining residual income for miscellaneous living expenses not listed on your credit report.

The VA requires that borrowers have a reasonable ratio of income that goes towards a mortgage payment so that they are not at risk for foreclosure.  This means that you typically do not want more than 41% of your income to go towards a mortgage payment to become a low risk borrower.  The additional amount of your budget covers typical expenses that every household requires.

By enforcing residual income requirements, the VA increases the chances of its borrowers earning sufficient income to meet all financial obligations, and also ensures borrowers have a cushion in the event of an emergency.

When working with a VA Loan Specialist at Veterans Mortgage of America, we will help you determine what your individual income and budget thresholds give you in buying power for your new home.  Our primary goal is to provide you with options that will give you the very best lending scenario that won’t tax your financial situation.

Finally, a veteran applying for a VA Loan must not have been discharged under dishonorable conditions.

VA Funding Fee

Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers in the case of a default considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan, if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:

  • Veteran receiving VA compensation for a service-connected disability, OR
  • Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
  • Surviving spouse of a Veteran who died in service or from a service-connected disability, OR
  • An Active Duty military member who has been awarded a Purple Heart.

The funding fee for second time users who do not make a down payment is slightly higher. See Loan Fees for more information about loan costs. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you money in interest over the life of the loan, you may see a very large increase in your monthly payment if the reduction in the interest rate is not at least one percent. Beware: It could be a bigger increase than you can afford.

Jimmy O.
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"USAVA Lending did a fine job. They explained everything. They treated me just fine and they were real friendly. If I had a question they got right back in touch with me at the time they said they would. They got what I wanted. I had no complaints. They corrected things that needed to be done. I was alright with the interest rate being the same. I would recommend them."
Elizabeth C.
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We received VA Refinance from USAVA Lending. All expectations were meet we had excellent communications from the "Executive Assistant. They provided prompt and thorough services. I would recommend USAVA Lending. It was easy with no hassles."
Will M.
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"The service was real good and they were pleasant. They were real polite and nice. The loan closed early and it did not take too long. We had no problems with them. The loan originator was excellent. He set us up and he was fantastic! He called back to see if everything went smooth and to find out if we had any questions. We did not have any questions because they answered them. I would definitely recommend them."
Barbara S.
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"They did a great job! I was very satisfied with their helpfulness and they went as far as taking care of the little details. During the time I was refinancing, my husband was in the hospital and was in ICU. The Senior Loan Processor was very helpful and was there for me when I couldn't be quite there myself. We got a reduced interest rate and reduced payment. I got a lot of great customer service from their team. I was looking for a place online and just happened to find their website and have been trying to refinance for 2-3 years..."
Charles M.
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"Thank all of you that worked to get this mortgage through. The Senior Loan Processor was quite a tireless person working with us. She was good to us and caring. She was also reassuring. We were very nervous and she calmed our fears.We would recommend USAVA Lending very highly. They were friendly, courteous, informative. They explained everything. USAVA Lending was the first loan company we have used in many years and it was worth our while. They facilitated the process, so we had nothing was held up."
Levi M.
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"I have used USA Home Loans a couple of times now and I keep going back because the employee I work with is great. I am always treated well and the employee is very personable. I have recommended them and if asked I would keep recommending them they are efficient."
Anthony Z.
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"Everyone at USAVA Lending did a splendid job in refinancing my home..They were very courteous,imformative, and answered all my questions. They were all very professional in handling my re finance, and it was finished promptly.I recommend your Lending Instition very highly.Thank you all for doing such a great job!"
Joe L.
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"Compared to Chase and other places that I worked with USAVA Lending were excellent. It was impressive because they are in Arizona and I am 1000 miles away in the bay area in California and I got better service from them than I would get from Chase who is literally around the corner. When the loan originator contacted me I was kind of leery that something like this would go through, but he did a remarkable job in terms of managing the loan application and process..."