VA Home Loan Rules in Palm Beach Gardens, West Palm Beach FL.

Since 1944, the U.S. Department of Veterans Affairs (VA) has been helping the nation’s veterans secure a piece of the American Dream that they fought to protect with their VA loan program.

What is a VA Loan?

A VA loan is a mortgage loan backed by the Department of Veterans Affairs (VA) for those who have served or are currently serving in the military. The VA doesn’t lend money to the applicants; however, it backs loans provided by private lenders (banks, mortgage companies, or other financial institutions) to active military personnel, military spouses, and veterans.

Types of VA loans

  • Purchase loans
  • Cash-Out Refinance Loans
  • Interest Rate Reduction Refinance Loans or IRRRL (also known as VA streamline refinance loans)

How Do They Work?

As stated above, the federal government does not lend money with a VA loan, but they do offer a guarantee. The applicant (veteran, military officer, or military spouse) borrows from a private lender and the federal government guarantees payment for a certain portion of the mortgage. In case the borrower defaults on the loan, the government pays the lender back.

Lenders provide more favorable terms for the VA loans as compared to conventional mortgages because they are guaranteed re-payment of the loan amount. For example, you might be able to obtain a loan with 0% down payment under certain circumstances.

You can apply for a VA loan to purchase an existing house, build a new home, make energy-efficient improvements in your current home, or re-finance your existing mortgage. However, you can use a VA loan to purchase a primary residence only. The VA loan program does not provide for investment properties or vacation homes.


VA Loans are available to veterans, active duty military service members, current and past members of the Reserve and National Guard, and surviving spouses of military service members who lost their lives in combat. To be eligible for a VA loan, the applicant should meet the minimum length of service:

  • 90 days during war time (active duty)
  • 181 days during peace time (active duty)
  • Less than 90 days if the applicant is discharged for a service related disability (active duty)
  • 6 years in the Reserves or the National Guard

Applicants who served in other organizations may also qualify for VA loans:

  • Cadets at the U.S. Military/Air Force/Coast Guard academies
  • Public Health Service officers
  • Midshipmen at the U.S. Naval Academy
  • Merchant seamen with World War II service
  • Officers of the National Oceanic & Atmospheric Administration

The lenders also consider your credit score, debt-to-income ratio, and other requirements to qualify for the loan.

Advantages of VA loans

  • No down payment
  • No Mortgage Insurance Premium (MIP)
  • Flexible eligibility requirements
  • Low credit scores may be approved
  • Higher debt-to-income ratios are accepted
  • Lower rates than the conventional loans
  • VA negotiates with the lender in case you are facing foreclosure

In addition, you don’t have to be a first-time homebuyer to obtain a VA loan. The VA loan program is a lifetime benefit that you can use as many times as you need to. There are also several other benefits of a VA loan that can make home ownership a reality for active military service members or veterans who otherwise might not be able to afford one.

To learn about home mortgage loan options in West Palm Beach, FL, visit or call (561) 799-4015.

Tuesday, 24 April 2018 08:48