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VA Mortgages
VA Mortgages
VA Home Loan candidates are defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. All veterans must qualify first, for the are not automatically eligible for the program.
Five Easy Steps to a VA Loan
- Apply for a Certificate of Eligibility. A veteran who doesn’t have a certificate can obtain one easily by completing VA Form 26-1880
- Decide on a home the buyer wants to buy and sign a purchase agreement
- Order an appraisal from VA (This is ordered through First Option Mortgage)
- Apply for loan through your Indianapolis Mortgage Lender, First Option .We will send the application to the local VA office, which will notify the lender of its decision
- Close the loan and the buyer moves in
Summary
- Minimum credit score: 620
- Minimum down payment: None
- DTI: Max of 41%, unless residual income meets household size and region requirements
- Gift funds: Allowed
- Seller Concessions: Minimum of 4%
- Mortgage Insurance (MI): No
- Funding Fee: Yes
- Occupancy type: Primary only
Advantages
- Lowest rates of loan types
- The VA limits the amount of closing costs charged to the buyer
- Certain eligibility requirements can waive the funding fee
- Funding Fee can be financed into the loan
- No monthly MI fee
Disadvantages
- Funding Fee (waived for veterans with service related disability
- Any repairs notated on the appraisal must be fixed
- A clean WDO is required and must not be paid by the buyer
- Appraisals typically have more restrictions
- A clean water report is required if property is on a well
