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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

  1. Apply for a Certificate of Eligibility. A veteran who doesn’t have a certificate can obtain one easily by completing VA Form 26-1880
  2. Decide on a home the buyer wants to buy and sign a purchase agreement
  3. Order an appraisal from VA (This is ordered through First Option Mortgage)
  4. 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
  5. 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

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and request a free rate quote.

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