i3 Lending specializes in VA loans, which are guaranteed by the Department of Veterans Affairs (VA). These loans were established to provide transition assistance and other benefits to men and women who served or are serving in the Armed Forces. This includes the Army, Navy, Air Force, Marines, Reservists, National Guardsmen, and certain surviving spouses. Also, if you are a disabled veteran, you may qualify for additional benefits on a VA home mortgage loan.
Benefits of VA Loans
- Competitive Interest Rates – The VA loan program offers most competitive rates in the market
- No money down for loans up to $484,350. There are 199 high cost counties where the limit can go as high as $726,525.
- No PMI (Private Mortgage Insurance)
- Fewer Credit Restrictions
- Government limits the amount of closing costs and origination fees lenders can charge
- Seller Assistance – There is no limit to the amount of seller concessions for closing costs
- Easy Refinance – If it benefits the Veteran a Streamlined refinance can be closed in 7 to 10 days
- Protection built into ARM products that caps the annual allowable rate increase
- There is no limit to the number of times a veteran may use the program
In addition to these benefits, the VA Home Loan program offers default assistance to veteran borrowers in financial difficulty through a higher level of service and a greater range of alternatives to avoid foreclosure. Delinquency and foreclosure rates for VA loans are substantially less than for conventional and FHA loans.
The VA Funding Fee
The Veterans Administration assessed a Funding Fee to all VA loans between .5% and 3.3% of the loan amount. The fee is added into the amount of the loan to be paid over the life of your VA home mortgage loan. The VA Funding Fee replaces the much higher priced Mortgage Insurance required when you get a conventional home loan. If you are a Disabled Veteran, you may qualify to get the fee waived completely if you have at least a 10% disability.
Qualifying for a VA Mortgage Loan
The VA offers excellent qualifying standards. The VA does not use credit scoring in their analysis of the loan. Even if you have experienced some financial difficulties in your life that caused your scores to be low but have maintained a good payment record over the past year or so, you may qualify for a VA mortgage loan. This can be a tremendous savings compared to the cost of conventional loans when the borrower’s credit scores are low.
You will need to provide your DD214 and a valid Certificate of Eligibility (COE). The loan must also be for your primary residence
Eligibility Requirements for VA Home Loans
Service during wartime:
|World War II – September 16, 1940 – July 25, 1947|
|Korean War – June 27, 1950 – January 31, 1955|
|Vietnam War – August 5, 1964 – May 7, 1975|
|Gulf War – August 2, 1990 – to be determined|
- 24 months continuous active-duty – with other than dishonorable discharge
- At least 90 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
- At least 90 days active duty – and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
- Less than 90 days active duty – if discharged for a service-connected disability
Service during peacetime:
|All – July 26, 1947 – June 26, 1950 and February 1, 1955 – August 4, 1964|
|Enlisted – May 8, 1975 – September 7, 1980|
|Officers – May 8, 1975 – October 16, 1981|
If you were separated from service:
|Enlisted – After September 7, 1980|
|Officers – After October 16, 1981|
* 90 days applies for wartime
Active-duty service personnel:
|If you are now on active duty, eligibility can be established after 90 days of continuous active duty. Upon discharge or release from active duty, eligibility must be reestablished.|
Selected Reserve or National Guard:
|If you are not otherwise eligible and you have completed a total of six credible years* in the Selected Reserve or National Guard (member of an active unit, attended required weekend drills and two-week active duty for training) and one of the following:
*Individuals who completed less than six years may be eligible if discharged for a service-connected disability.
You may also be determined eligible if:
A surviving spouse who remarries on or after age 57 and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after age 57, must have applied no later than December 15, 2004, to establish eligibility.
Apply for a VA Loan
Jordon Yates and his mortgage team is a leading provider of VA loans all over Chicago and in surrounding areas like Cicero, Oak Park, Des Plaines, Oak Lawn, Skokie as well as the whole state of Illinois. For more information on VA loans and how to qualify speak with an VA home loan expert at 312-600-4513 or fill out the quick quote form on the right.