VA Loan Guide - VA Home Loans Houston

VA guaranteed loans are made by private lenders and mortgage companies to eligible veterans and active duty personal for the purchase of a home that must be for their own personal occupancy. To get a loan, the veteran must apply with a lender. If the loan is approved, VA will guarantee a portion of it to the lender.

Requirements for VA Loan Approval

To obtain a VA loan, the law requires that:

• The applicant must be an eligible veteran or surviving spouse who has available entitlement
• The veteran must occupy the property as their primary residence

Eligible Loan Purposes

Eligible veterans and active duty personal may obtain loans for the following purposes:

• To buy a home up to 4 units for one veteran, including townhomes or condominium units in a VA     approved project
• To refinance an existing home loan
                     
                       o To reduce the interest rate (IRRL)
                       o To convert and adjustable rate mortgage to a fixed mortgage payment
                       o To convert a conventional loan to a VA loan


Advantages of VA Home Loans

• 100% Financing (NO DOWNPAYMENT REQUIRED)
• No Cash Reserves Required
• VA Funding Fee can be financed
• Seller can contribute 4% to cover closing cost AND prepaid items
• No Monthly Mortgage Insurance
• More lenient on derogatory credit