VA Home Loans – 7 Home Buying Benefits for Veterans

By Austin Moyer at Coldwell Banker and Rachel Wiener at M&T Bank

A VA Home Loan is a home loan provided by a lender with a portion of the loan guaranteed by the VA. The VA provides this benefit to veterans, service members, certain National Guard and Reserves, as well as eligible surviving spouses to help you find more favorable terms on your way to find the home of your dreams. Not sure if you’re eligible? Reach out to Rachel Wiener, the co-author of this article, for assistance!

What are the benefits of a VA Home Loan?

1. There is no need for a down payment. One of the greatest benefits of the VA Home Loan is that if you do not have a lot of money saved for a down payment, you may not need one. The guarantee from the VA can take the place of a down payment which means you can potentially move into your dream home sooner. In most counties, there is a limit on the amount you can mortgage without a down payment, so be sure to double check. We’ll help!
2. You may qualify for more competitive loan rates. This is because the VA has guaranteed a portion of your loan, so you may find more competitive rates from lenders. Lenders will still consider typical loan variables, like credit score and bank statements. The VA Loan can help provide more leverage for you.
3. The VA acts as a guarantor for a portion of the loan. This means that the VA will be responsible to the bank for that portion of the loan in the case of foreclosure. Your COE will tell you how much of the loan is covered. 
4. The VA guaranteed amount does not limit the amount you may borrow for your mortgage. Your mortgage will be determined the same way as other home buyers with documents like W2s, paystubs, and banking statements, and credit score. As long as the lender approves your mortgage–meaning as long as you can afford the home, you can buy it without a downpayment. Talk to your lender about what will work best for you.
5. No need for private mortgage insurance (PMI). PMI is typically required on a home purchase with less than a 20% of a down payment. Because PMI is not required, you’ll end up saving on your mortgage. 
6. There are no penalties for paying off the loan early which means you can save more money down the line.
7. You’ll move into a safe home. The VA will require an appraisal to ensure the home meets the VA’s Minimum Property Requirements (MPRs). A home inspection by an impartial party is always strongly recommended in any home purchase.

How do I use my VA Home Loan Benefit?

1. Make sure you’re eligible! Apply for your Certificate of Eligibility. We recommend applying through your lender because it will give you the opportunity to ask questions. We’re happy to be your partner in this journey. Click this link to Reach out to Rachel Wiener to discuss your approval today!  Eligibility requirements will depend on length of service and type of service. The VA Home Buyers Guide can provide a few more details. We recommend that you determine your eligibility early in your home searching process so that your realtor can help you find homes within your budget. 
2. Your Certificate of Eligibility, or COE, will determine the overall eligibility for the VA loans entitlement. The rest of the home buying process will be fairly typical, which means the lender will consider your credit score, income, tax and bank documents to determine how much you can mortgage. 
3. Once you understand your entitlement and mortgage pre-approval, talk with your realtor. The Austin Moyer Team will be ready to help you find your dream home. 

Realtor and Lenders like us are here to help. Reach out with questions. We’ll be here for you!

Author Bios

Rachel Wiener is a mortgage originator at M&T Bank with over 8 years of expertise in the banking/mortgage industry. With expertise in first time home buying, refinancing, and more, she’s committed to helping you find your dream home. Get in touch today!

Austin Moyer is a realtor at Coldwell Banker. He and his experienced team are prepared to help you find your dream home in Rochester, NY and the surrounding areas. He’s never too busy for you! Give him a call or send him an email at austin@coldwellbankerwny.com