VA Home Loans
Discover the advantages of VA home loans and how they can make buying or refinancing a home easier.
Explore Our Home Loan Options
We make the mortgage process easy by working with numerous mortgage lenders, helping you find the right loan for your specific situation.
The Department of Veterans Affairs partners with private lenders to provide the VA home loan program, which thanks veterans, eligible surviving spouses, and active-duty service members for protecting our country.
These loans are especially helpful to marginalized individuals who may struggle to find financing elsewhere, such as the 6.1% of service members who identify as LGBTQ+. Additionally, 43% of active duty service members are people of color and find VA products to be one of the best pathways to homeownership. In fact, Black and Latine borrowers were half as likely to be denied a VA mortgage than a conventional loan product.
If you’re ready to claim your VA home loan benefits, Pride Lending is here to help. Speak to an experienced loan officer today and learn how we can assist you in starting your journey toward homeownership with VA loans.
VA Home Loan Benefit
The Department of Veterans Affairs (VA) guarantees these government-backed mortgages, ensuring lenders recoup a portion of their losses should the borrower default. This means that mortgage companies are willing to offer excellent rates and more flexible qualification requirements than conventional loans.
VA loans afford unique benefits that are available only to United States military service members, including low interest rates, no down payment requirement, and generous funding. Better yet, you can easily refinance loans through the VA IRRRL program (Interest Rate Reduction Refinance Loan program!
No Down Payment Required
With most purchase loans, even other government agency-backed loans, borrowers must provide a percentage of the loan amount upfront to protect the lender. However, VA loans differ: they have a 0% down payment requirement. This means all you must pay is the VA funding fee and closing costs, significantly reducing your expenses.
However, if you choose to provide a down payment, you can often secure more competitive interest rates while lowering your monthly mortgage payments. We can help you find local, state, and national programs that provide funding for prospective homebuyers; these down payment assistance programs will help you save money over time, and many of them don’t need to be repaid.
No Private Mortgage Insurance Premiums
Private mortgage insurance can make up a significant portion of the monthly payment for a conventional home loan, upping your expenses. However, VA loans don’t require any mortgage insurance, though you will have some upfront costs related to securing the mortgage through the VA program.
Competitive Interest Rates
Eligible veterans and service members can enjoy more favorable terms than other loan options, as a VA lender has more security with these mortgage loans. Working with Pride Lending, you’ll gain access to the best rates on the market, ensuring you get the most of your VA home loan guarantee benefit.
Flexible Credit Requirements
The VA works hard to ensure that all eligible service members receive financing through their VA loan benefit, even if they have a short credit history or major debts.
As such, the Department of Veterans Affairs does not set any credit score thresholds to participate in the program, meaning that you can shop around to find a VA lender who is willing to work with you based on your credit score.
While every mortgage lender varies, some will go as low as 500, with the average being between 580 and 620.
No Prepayment Penalties
Paying ahead is a great way to build up equity faster and has numerous benefits. By putting more money into your mortgage each month, you can reduce the money spent on interest, and you can also achieve a cash-out refinance faster, giving you a lump sum to use for other needs.
However, some lenders will limit how much you can pay ahead, as the money you put toward your interest rate makes them money. The VA loan is different: you can put more down each month without worrying about being penalized for paying ahead.
Assistance for Struggling Borrowers
There are many housing grants and other housing-related programs available for a service member who may be struggling to secure or pay their loan.
For example, the Native American Direct Loan provides specialized loans for Native American Veterans buying or building property on Federal Trust Land. There are also grants available for veterans with a service-connected disability or their surviving spouse, including for home adaptations to an existing property.
Eligibility Requirements for VA Loans
Military members must prove that they have met the service requirements by receiving a valid Certificate of Eligibility (COE) from the Department of Veterans Affairs.
Active-duty service members, including those in the National Guard, Air Force, Navy, Army, Marines, and Reserve, must have 90 days of continuous active-duty service.
Qualified veterans who served between August 1990 and the present must have served for at least 90 continuous days of active service or 24 months of service during peacetime. You may still qualify if you were discharged due to hardship, early out, reduced forces, or a service-connected disability. Only those with honorable discharges can receive a COE.
A surviving spouse may also be able to get a Certificate of Eligibility if their partner was a prisoner of war, listed as missing in action, or died due to a service-related injury.
Lastly, the property location must be for your own personal occupancy. Single-family homes are the most common candidates for VA home loans, but you can use your VA home loan benefit for a home of up to 4 units as long as you reside in one of them. Manufactured homes may be eligible, but they need to meet minimum property standards.
The VA Loan Process
The process for VA home loans is similar to that of getting any other home loan; however, the VA department requires some additional steps. Our team guides service members step-by-step through the VA loan process, ensuring a seamless mortgage experience.
Check That You Meet Requirements
Though VA home loans are generous, you must ensure that you have the funds to afford your new home by reviewing your budget, expenses, and income. You’ll want to scour your credit report for any wrong information that may drop your score, as this can impact the interest rates that you can secure.
Contact Pride Lending
Not all mortgage companies provide VA loans, and it’s important that you find one that has competitive terms. Pride Lending will assist in matching you to the right loan program for your needs. You’ll then fill out an application and get preapproved.
Get Your Certificate of Eligibility
You can apply for this online through the Department of Veterans Affairs or apply with us to obtain it on your behalf. To get your COE, you need to provide evidence of your military service, including your discharge type and your time of service. If you were dishonorably discharged, you may be able to contest this by requesting a discharge upgrade from the VA.
Submit Your Application
We make it easier than ever with all our all-online process. Share your information, such as your credit score, income, and financial details, and we’ll determine whether you’re eligible for financing.
Get Preapproved and Start Shopping
This is the most exciting part of the mortgage process for any potential homeowner. Once you’re preapproved, we’ll inform your realtor, and you can begin searching for the right home. Working with a real estate agent, you’ll find the perfect property to meet all your needs. We’re here to help you throughout the process, and you can always check in with us to ensure that you’re staying within budget.
Offer Acceptance
If your offer is accepted, you’ll sign a contract. This purchase agreement confirms that you intend to purchase the home, and it also identifies the purchase price. Most VA home loans include a “VA void clause” or “VA escape clause” that allows you to void the agreement if the appraisal does not match the purchase price. You should also ask your realtor if additional contingencies should be included in case the home does not meet the requested standards.
Get an Inspection
While a home inspection is not required by the VA program, it’s always a good idea to uncover any issues that may be present in the property.
Conditions
If you’re happy with the inspection, then you’ll let us know that the purchase contract is ready to go. We’ll work with you to ensure that everything in the contract meets your needs.
Begin Underwriting
Underwriting is the final check that everything is correct and that the loan can proceed; this process is completed with your lender. You may need to provide additional paperwork to your lender at this time, and we’ll be here if you need any assistance.
VA Appraisal
You will have to get a VA appraisal, which is done to ensure that the home meets the guidelines for the VA home loan program and its value matches the purchase price if there are any issues that drop its value.
Clear to Close
After your lender’s underwriter has reviewed all your details and ensured everything is correct, it’s time to close. We will schedule the closing, and the title company will send details for how to transfer the upfront expenses of the home.
Close on the Home
In this step, you provide the funding fee for the program and pay closing costs, then sign the paperwork stating that the home is officially yours. The title is now transferred over to you. Congratulations!
Why Choose Pride Lending for Your VA Loan?
If you or a family member have proudly served our country, our team can help you get the most out of your VA home loan benefit. Pride Lending is committed to serving marginalized communities, such as LGBTQ veterans and BIPOC service members. Our entire team is made up of allies and members of marginalized individuals, which includes LGBTQ+ and BIPOC mortgage professionals.
With deep experience in all home loans, including VA loans, we can provide you with a streamlined application and processing experience that takes the hassle out of home buying.
Our friendly loan officers will help you with every step of the process, including determining whether you qualify for a Certificate of Eligibility (COE) and matching you to programs that can help reduce the costs of homeownership.
Pride Lending is an LGBT Business Enterprise certified by the National LGBT Chamber of Commerce. Our founder was honored as the National Association of Mortgage Brokers (NAMB) Broker of the Year in 2022. In 2024, the PRISM Awards honored us for our unwavering commitment to inclusivity in the mortgage industry.
Take The Next Step In Your Home Ownership Journey
Pride Lending is excited to help service members enjoy all the benefits of VA loans. You can see if you qualify for a VA loan and take the first step toward homeownership - all from the comfort of your home.
Get started today by contacting us to discuss your specific needs and learn how we can secure you the most competitive interest rates possible.
