What is a VA Loan?
A VA loan is a mortgage loan option that requires a $0 down payment. This type of loan is for Veterans, service member, and their spouses. VA loans are not issued by the government, instead, they are issued by private lenders such as mortgage companies of a bank and are guaranteed by the U.S. Department of Veteran Affairs.
The VA loan was established in 1944 by the U.S government to help military service members purchase or refinance a home once they returned home. This program facilitates homeownership for veterans who may not have perfect credit or enough money for a down payment.
Just like a conventional loan or any other loan, VA mortgages have specific details and information for the lender to evaluate. We encourage you to read more about those details below or give us a call with specific questions that a loan specialist here is Mortgages Done Right Inc can help you clarify.
What is the VA loan eligibility requirement?
For the most part members of the military, veterans, reservists, and National Guard is eligible to apply for a VA mortgage loan. Spouses of the military members who died while on active duty or because of a service-related disability are also eligible to apply.
For active-duty personnel, you normally qualify after about six months of service. Reservists and National Guard members must wait six years to apply unless you are called into active duty which allows you to apply after 181 days of service.
You can qualify if:
- Served at least 90 consecutive days of active service during wartime
- Served 181 days of active service
- You have been an active member of the National Guard or Reserves for at least 6 years
- You are married to a military service member who died while in active duty or as a result of a service-related disability
Contact us at 561-375-5123 to find out if you qualify!
Regulations and Fees
Now that you know that VA loans are part of a federal program it is important to keep in mind that the United States government doesn’t make loans directly to veterans or their spouses. Instead, private mortgage lenders issue the loan to you while the Department of Veteran Affairs provides a guaranty. This guaranty offers protection to the lender against total loss in case of a buyer default, which provides an incentive for private lenders to finance loans with much better terms. This means LOWER RATES for you!
All the VA Loan fees go directly to the VA to ensure this program continues to operate for the future Veterans and military personnel. The fee varies depending on the buyer’s situation and is not applicable to all veterans, as it does not apply for buyers who have service-related disabilities. For example, if the buyer is using the VA Home Loan Program for the first time, the funding fee is typically 2.3 % of the purchase price of the home, and for any time after that, the fee is 3.6 percent.
The good news is VA loan borrowers can roll this funding fee into their overall loan amount. This program also limits closing costs for the buyer and the seller pays most or all expenses allowing many VA borrowers to buy a home with no money due at signing.
If you have questions about what your funding fee would be when using a VA loan email, us or give us a call at
Can I refinance a VA loan and lower my interest rate?
The Interest Rate Reduction Refinance Loan gives existing VA borrowers the option to lower their interest rates. This option requires VA loan holders to refinance their current VA loan into another VA loan.
The upside of the IRRL is that credit and appraisal underwriting packages are not required. In Addition, you will not have to pay any money out of pocket for an IRRL. It’s structured so that any fees are rolled into the new loan or you will get your interest rate adjusted to cover the lenders’ cost.
Why choose Mortgages Done Right Inc. for your VA loan.
Mortgages Done Right Inc is the best mortgage broker company in Boynton Beach, Florida. Greg Hayden the President of Mortgages Done Right Inc. created the business to give thousands of clients and hundreds of realtors more mortgage choices in the marketplace. The days of going to one lender for a mortgage are gone. Mortgage brokering is better for the consumer.
Before buyers would wait 2-3 weeks for a bank to get back to me on an approval and if it was a no, I didn’t have time to go elsewhere. No more. If one lender says no, I have 25+ more that can say yes within days. More lenders, more options with better rates and service then the Banks or the Quicken mortgages of the world. We have programs for just about any type of borrower. Loans for the regular W2 wage earner to the self-employed person who can’t verify income.
“My goal as president of Mortgages Done Right Inc. is to make sure my customers have as much opportunity to get the American dream of homeownership.”
0% Down (for qualified borrowers)
VA Loans are one of the only 0% down home loans available on the market today.
No Private Mortgage Insurance
Because VA loans are government-backed, banks do not require you to purchase Private Mortgage Insurance.
Great Interest Rates
The Department of Veteran Affair’s guaranty gives lenders a greater safety and flexibility, which allows them to provide borrowers with more competitive rates than non-VA loans and less strict qualification standards.