5 Things You Need to Know About VA Loans

army guy with daughter

Guardian Mortgage is proud of the men and women who devote themselves to our country. Did you know that if you’re an Active Duty Servicemember, Veteran, or surviving spouse, you may be eligible to qualify for a VA loan? Contact a Guardian Mortgage Loan Originator to learn more about these incredible mortgages for qualified borrowers. Don’t miss out on benefits you’ve already earned.

Unique Features Unavailable to Civilians

VA loans have two amazing benefits: 1) They allow for 0% down payment. 2) No Private Mortgage Insurance (PMI) is required. The United States Department of Veterans Affairs (VA) backs a portion of the loan amount, thereby reducing risk to the lender. The VA loan program can be used to purchase a single-family home, a multi-unit home, a condo or new construction, provided it is the borrower’s primary residence. You can also refinance with a VA loan.

Not Just Veterans are Eligible

Veterans as well as most active Servicemembers of the United States military branches, National Guard, and Reserves are eligible to qualify for a VA loan. Selected surviving spouses can also apply. Eligibility is based on the length of time served and the time period served, the requirements of which can be found on the VA’s website(Opens in a new window). You will need a Certificate of Eligibility (COE) from the Department of Veterans Affairs, which can be obtained online(Opens in a new window) by logging into your VA account. So many VA loan benefits go unused simply because of the confusion surrounding eligibility.

The Benefits are Reusable

If you use it -- you don’t lose it. Just because you’ve had a VA loan in the past doesn’t mean that you can’t apply for another one when it’s time to change homes. When your home sells and/or the VA loan is paid off, you once again have access to the full of your entitlement. In fact, many service members use their VA entitlement each and every time they move. It’s a benefit that’s good for a lifetime.

Great Rates

You might think that because of their 0% down payment options and lack of required mortgage insurance, VA loans would have a higher-than-average interest rate. The truth is actually quite surprising: rates for VA loans are often lower than traditional loan rates. And another secret? If you already have a VA loan you might benefit from an Interest Rate Reduction Refinance Loan (IRRRL) to refinance your current loan with a better rate or terms. A Guardian Mortgage Loan Originator can help.

The Right Lender Matters

A VA loan is backed by the government, but is not from the government. The loan itself is a product offered by a bank or mortgage company, so it’s important to seek out a reputable partner. Do your research. Compare products and deal with a trusted lender like Guardian Mortgage who has extensive experience in VA loans and a commitment to putting customers first. There are many guidelines for VA underwriting and our team has the experience to walk you through every step of the way.