Lawhorn & Associates Mortgage Co., Inc. is a VA Approved Lender.
VA mortgages are a type of home loan available to veterans, active-duty service members, and eligible surviving spouses. These loans are guaranteed by the Department of Veterans Affairs (VA), and they offer many benefits to those who qualify. In this article, we'll explore what VA mortgages are, how they work, and the advantages they provide.
What is a VA mortgage?
A VA mortgage is a home loan that is backed by the VA. These loans are designed to help veterans and their families buy homes with favorable terms and conditions. VA mortgages are available through private lenders, such as banks and mortgage companies, but they are guaranteed by the VA. This means that if the borrower defaults on the loan, the VA will pay the lender a portion of the loan amount.
How does a VA mortgage work?
To obtain a VA mortgage, you must first be eligible. This typically requires that you have served at least 90 consecutive days of active duty during wartime, 181 consecutive days of active duty during peacetime, or six or more years in the National Guard or Reserves. You may also be eligible if you are the spouse of a veteran who died in service or from a service-related injury or illness.
Once you have established your eligibility, you can apply for a VA mortgage through a private lender. Lawhorn & Associates Mortgage Co., Inc. will evaluate your creditworthiness, income, and other factors to determine if you qualify for a loan. If you are approved, the VA will guarantee a portion of the loan, which will enable you to secure more favorable terms and conditions.
What are the advantages of a VA mortgage?
VA mortgages offer several advantages over conventional home loans. Some of the most significant benefits include:
No down payment: With a VA mortgage, you can purchase a home with no down payment. This can make it much easier to buy a home, especially for those who don't have a lot of savings.
Lower interest rates: VA mortgages typically have lower interest rates than conventional loans, which can save you thousands of dollars over the life of the loan.
No private mortgage insurance: Unlike conventional loans, VA mortgages do not require private mortgage insurance (PMI). This can save you hundreds of dollars each month on your mortgage payment.
Flexible credit requirements: VA mortgages have more flexible credit requirements than conventional loans. This means that even if you have less-than-perfect credit, you may still be able to qualify for a VA mortgage.
Streamlined refinancing: If you already have a VA mortgage, you may be able to refinance it through the VA's Interest Rate Reduction Refinance Loan (IRRRL) program. This program allows you to refinance your mortgage with minimal paperwork and no appraisal.
- If you are a Native American Veteran, and either you or your spouse is Native American, our Native American Direct Loan (NADL) program may help you get a loan to buy, build, or improve a home on federal trust land. You may also get a loan to refinance an existing NADL and reduce your interest rate. Find out if you qualify for an NADL—and how to apply.
In summary, VA mortgages are an excellent option for veterans, active-duty service members, and eligible surviving spouses who want to buy a home. These loans offer many benefits, including no down payment, lower interest rates, and no PMI. If you're eligible for a VA mortgage, it's worth considering this option as you shop for a home loan.
For more information, contact us:
Lawhorn & Associates Mortgage Co.
100 Jefferson St., South, Suite 100B
Huntsville, Al 35801
(256) 539-0555 (office)
(256) 337-3700 (Cell)