TEXAS FIVE STAR LENDER

VA loans are home loans designed for American veterans, current or former military, or their surviving spouses guaranteed by the U.S. Department of Veterans Affairs (VA). 

Benefits include:

• There are no down payment requirements.
• A negotiable interest rate.
• No mortgage insurance premiums.
• Low closing costs. 

Consider checking with your Lender for complete details if you qualify for this type of loan. Government-guaranteed loans can be either fixed-rate or adjustable rate.

Eligibility requirements for VA home loan programs

https://www.va.gov/housing-assistance/home-loans/eligibility/

Learn about VA home loan eligibility requirements for a VA direct or VA-backed loan. Find out how to request a Certificate of Eligibility (COE) to show your Lender that you qualify based on your service history and duty status. Remember that you'll also need to meet your Lender's credit and income loan requirements for a VA-backed home loan to receive financing.

Minimum active-duty service requirements

For service members

Suppose you have served for at least 90 continuous days (all at once, without a break in service). In that case, you meet the minimum active-duty service requirement.

For Veterans

The minimum active-duty service requirements depend on when you served.

When did you serve?

• Between August 2, 1990, and the present (Gulf War period to present)
• Between September 8, 1980, and August 1, 1990
• Between October 17, 1981, and August 1, 1990, as an officer
• Between May 8, 1975, and September 7, 1980 (post-Vietnam War period)
• Between May 8, 1975, and October 16, 1981, as an officer
• Between August 5, 1964, and May 7, 1975 (Vietnam War)
• Between November 1, 1955, and May 7, 1975, in the Republic of Vietnam
• Between February 1, 1955, and August 4, 1964 (post-Korean War period)
• Between June 27, 1950, and January 31, 1955 (Korean War)
• Between July 26, 1947, and June 26, 1950 (post-WWII period)
• Between September 16, 1940, and July 25, 1947 (WWII)

To see the minimum active-duty service requirement for each date, please visit https://www.va.gov/housing-assistance/home-loans/eligibility/

How do you request your Certificate of Eligibility (COE) (VA Form 26-1880)?

Sign into https://www.va.gov/housing-assistance/home-loans/request-coe-form-26-1880/introduction if you want to:

• Request a COE
• Find out if you already have a COE and download it
• Check the status of your request

How to determine your VA entitlement

The easiest way to check your VA entitlement is to request a certificate of eligibility (COE) online at the Veterans Information Portal.

Your COE will list exactly how much entitlement you have; if you don't currently have a VA loan, it will show the maximum basic VA entitlement of $36,000. If you own any other VA-financed properties, the COE will provide details about the loans and how much entitlement you've used.

For veterans with full entitlement, there is no limit on how much the VA will guarantee. Whatever the loan amount, if you can find a lender who will approve you for that loan, the VA will guarantee a quarter of the loan amount.

For more information and an example of calculating your remaining entitlement, click here.

Example:

To take a concrete example, say a veteran bought a house with a VA loan of $200,000 four years ago and still makes payments on it. Now, he wants to move and buy a second home in the new location with a second VA loan. He has already used all of his basic entitlement because 25% of his first loan amount is $50,000 — more than the $36,000 maximum basic entitlement. The resulting number is the amount of basic entitlement you have left. If it's a negative number, consider the remaining basic entitlement of $0.

However, there is likely additional remaining entitlement because of a "bonus" entitlement. Your total remaining entitlement (basic plus bonus) is 25% of the County's conforming loan limit in which you buy your second (or most recent) house minus the amount of your entitlement you've already used.

Let's say the conforming loan limit in his County (Collin County of Texas for the year 2023) is $531,300, meaning his maximum total guaranty is $132,825. But he's already used that $50,000 on the first loan, so his remaining entitlement is $82,825.

He can purchase a new house up to four (4) times his remaining entitlement of $82,825 ($331,300) with a VA guarantee loan with no down payment.

Military Status:

• Active Service
• Reserves / National Guard
• Retired

Property Type:

• Single-Family
• Town House
• Condo
• Multifamily
• Co-op
• In most cases, VA loans can only be used to buy your primary home.

Disability Status

• Not Disabled
• Disabled

Down Payment

VA loans don't require a down payment. However, you can save money on your funding fee by putting down at least 10%.

VA Entitlement

Your VA loan entitlement is a promise the VA has made to guarantee your loan. It will reimburse your Lender a certain dollar amount if you fail to repay your mortgage. How much and when is it calculated using a baseline figure called the "basic" or "primary" VA entitlement?

If you meet minimum loan requirements, most lenders will loan you up to four times the basic entitlement without requiring a down payment. If you have already used your VA entitlement before, you may be unable to access the full amount.

You may be eligible for VA entitlement if you meet any of the following minimum service requirements:

• You are an active-duty service member who has served for 90 consecutive days.
• You are a veteran, National Guard member, or Reserve member who meets the active-duty requirements for your dates of service.
• You are the spouse of a veteran who died in the line of duty or from a service-connected disability.

VA Loan Limit

The VA loan limit is the maximum amount a qualified Veteran can borrow without making a down payment. Each day of military service builds your VA loan entitlement, the dollar amount the VA pays if you default on a VA loan and the Lender has to foreclose. You can typically borrow up to four times your VA entitlement without putting any money down.

Borrowers with full VA loan entitlement have no loan limits. For those without full entitlement, loan limits are the same as those of the Federal Housing Finance Agency. These vary by County and how many units the property you're buying has.

The maximum VA Loan Amount for Year 2025 without full entitlement is $806,500.

The maximum VA Loan Amount for all Texas Counties 2025 without full entitlement is $806,500.

This is an increase 5.2% from $766.550 for 2024.

VA Funding Fee

Military borrowers typically pay a one-time VA funding fee to help offset taxpayers' cost of home loans backed by the U.S. Department of Veterans Affairs (VA). There are ways to reduce the amount you'll pay; veterans with a service-related disability may not have to pay it.

For a no-down payment loan, the VA funding fee is currently 2.30% of the loan amount for first-time buyers. For veterans who use this benefit for a zero down mortgage a second time, the fee increases to 3.60% of the loan amount. Below are the year 2023 VA funding fee rates based on the purpose of your loan, your down payment, and whether you're a first-time or repeat VA home loan benefits user:

VA loans don't require a down payment. However, you can save money on your funding fee by putting down at least 10%.

The funding fee is usually added to your loan amount.

Veterans with a service-connected disability may be exempt from paying the funding fee.

VA Credit Score

·         Although VA mortgage requirements don’t set a minimum credit score, most lenders prefer at least a 620 score.