VA Loans are a special type of mortgage loan available for Service Members and their Families, as well as Veterans or Military Spouses. What sets VA loans apart is the fact that there’s no minimum down payment, and homeowners aren’t required to purchase private mortgage insurance*. They also often have lower interest rates and more favorable terms than conventional loans.
For clients of Armed Forces Bank, a VA Loan represents a great opportunity to purchase a home or refinance your home.
How to Use a VA Loan
Whether you’re looking to buy a home or refinance your home, a VA Loan with Armed Forces Bank can help you get on the way to achieving your goals. In the wake of the COVID-19 pandemic, many people are looking to buy or refinance, taking advantage of the historically low interest rates.
If you’re buying a home, VA Loans are quite simple to understand. Working with a loan advisor from Armed Forces Bank -- an approved VA Lender -- we’ll help you get started on your application, and we’ll stay with you throughout the whole VA Loan process.
With a VA home loan, you can purchase any home that would be considered your primary residence. This includes single-family homes, duplexes, or condos. However, second homes, investment properties, and farms/lands do not qualify.
Those who are interested in refinancing their home can also benefit from our simplified refinance process by working with our VA Loan experts at Armed Forces Bank. Even if your original loan was not a VA Loan, you can still take part in our refinancing program. Benefits of refinancing include:
- Borrow up to 90% of your home’s value
- Debt consolidation
- Get cash back
- Complete home improvement projects
- Move from adjustable rate to fixed-rate mortgage
- Shorten the term of your loan
- Lengthen the term of your loan and lower monthly payments
- Combine your mortgages or home equity loans into a single payment
What Are the Benefits of VA Loans?
For most mortgages, home buyers are required to purchase some type of insurance if they aren’t able to make a high enough down payment on their home. That’s in order to protect the lender if the home buyers end up defaulting on the loan.
VA Loans are different because they provide 100% financing -- which means there is no down payment and no additional insurance costs for the home buyer. However, buyers may have to pay a “funding fee,” based on exemption status, which can be paid off over time.
Another important benefit of VA Loans is that they are assumable. That means that, if you decide to sell your home, the loan can be transferred to the new home buyer -- even if they aren’t a service member or qualified veteran. This is highly attractive to many home buyers because VA Loans often have better rates and terms than conventional or FHA mortgages.
And when you move on to your next home, you’re able to apply for a brand-new VA Loan. That’s because there is no limit to the number of times you can take out a VA Loan. You can even have more than one VA home loan at a time.
While VA Loans have many benefits, if you have funds available to use for a down payment, it’s best to compare VA Loans with conventional loans to determine which is best for you.
Who Can Qualify for a VA Loan?
As VA Loans are guaranteed and administered by the United States Department of Veterans Affairs, these loans are exclusively offered to those qualified individuals who are serving or have served in the military.
To officially determine whether you are qualified, you must request a Certificate of Eligibility (COE) from the VA. If you do not have a COE, we are happy to help you navigate that process as part of completing your application. The COE shows the VA has determined you are eligible for a VA home loan and indicates the amount of available guaranty or entitlement.
To obtain a COE, fill out the “Request for a Certificate of Eligibility for VA Home Loan Benefits (VA Form 26-1880)” form, then submit it to the VA. Additional information about this form and other VA loan eligibility requirements are available in our VA Loan Guide, as well as on the VA website.
When it comes to qualifying for the loan, it’s often easier for military service members to qualify for a VA Loan compared to other mortgage loan programs. VA Loans have lower credit score guidelines than conventional loans, for example.
And it’s easy to get started with the Armed Forces Bank online or phone application process.
Why Choose Armed Forces Bank as Your Lender?
When it comes to purchasing or refinancing a home, we know you have many options for a mortgage lender. But Armed Forces Bank wants to help you through the entire VA Loan process, from start to finish.
We are a VA Lender with more than 100 years of experience, and we’ve been a dedicated Military Bank since 1907. We offer loans in 49 states, and all of our loan officers are Military Spouses and Veterans. Our loan officers are experts in providing you with VA Loan solutions that meet your needs as a military service member.
And Armed Forces Bank offers a Mortgage Service Guarantee** -- we’ll close your loan on time or pay you $1,000.
Get Started With Your Application Today
Our dedicated loan advisors are ready to help you get started. We’ll help you tailor your mortgage to your specific situation and get you a fast approval.
*VA Funding fee applies.
Subject to credit approval.