VA Home Loan
I was shocked to discover when reading the most recent VA survey that 1 out of 3 Veterans are not familiar with the VA Home Loan Guaranty Program. Only offered to U.S. Veterans, the Federal Loan offers many benefits, including:
- No Down Payment Required! (100% Financing for Eligible Veterans)
- Favorable Interest Rates (See VA Loan Rates)
- Easier Qualifying Standards (More likely to be approved than other types of home financing)
- No Maximum Debt-to-Income Ratio
- No Minimum Credit Score
- No Maximum Loan Amount (100% up to $417,000 in most counties)
- Limited Closing Costs
- No Mortgage Insurance
- Reusable and Assumable
I could keep listing VA home loan benefits; when comparing a VA mortgage to other types of Financing (Conventional, FHA, etc.) – I haven’t had a time that VA hasn’t offered the most benefits. Why aren’t more Veterans taking advantage of their VA Benefits? According to the survey, Veterans reported:
- 33.6% didn’t know about the program
- 31.8% thought a ‘conventional FHA mortgage’ was easier to obtain or less expensive (Ask for a comparison, you may be surprised with the results!)
- 9.9% didn’t apply because they didn’t think they’d qualify (Qualification Standards are actually easier!)
- 8.1% were discouraged the use of the VA program by their lender and/or REALTOR ® (Confession time…)
VA Home Loan Confession
When I first started originating loans 15 years ago, I worked for a much larger company. One day, someone called in asking about VA financing. As a new Loan Officer, I didn’t know anything about VA loans. I asked my manager about the program. My manager didn’t originate VA loans and said that other loan programs usually worked out to be better. I asked for supporting comparisons and was given an evasive response.
Then I had to call back the Veteran and give that same wishy-washy answer. He described how the VA constantly boasted about the program and was surprised to hear otherwise. I had nothing or no one to back me up. I felt like an impostor, a traitor to my country. Maybe not that extreme, but I felt horrible. To this day, I’m still ashamed when I remember those conversations.
That’s when I knew. I had to make a change. I dreamed of doing what’s best for home buyers instead of what’s convenient for the company. So, in 2004, we created MLS Mortgage Group. We’re pleased to offer VA Loans to eligible Veterans. MLS Mortgage Group has never discouraged Veterans from applying for a VA Home Loan. In fact, we encourage it.