What is a VA-Guaranteed Loan?

A VA-Guaranteed Loan can be used to:
  • Buy a home, either existing or pre-construction, as a principal residence
  • Refinance an existing loan
Benefits of a VA-Guaranteed loan:
  • Equal opportunity for all qualified Veterans to obtain a VA loan
  • Reusable
  • No down payment (unless the purchase price is more than the reasonable value of the property)
  • No mortgage insurance
  • One time VA funding fee that can be included in the loan
  • Veterans receiving VA disability compensation are exempt from the VA funding fee
  • VA limits certain closing cost a Veteran can pay
  • Can be assumed by qualified persons
  • Minimum property requirements to ensure the property is safe and sanitary
  • VA staff dedicated to assisting Veterans who become delinquent on their loan
Who is Eligible?
Generally, the following people are eligible:
  • Veterans who meet length of service requirements
  • Service members on active duty who have served a minimum period
  • Certain Reservists and National Guard members
  • Certain surviving spouses of deceased Veterans
Key underwriting criteria
  • No maximum debt ratio: however lender must provide compensating factors if the debt ration is over 41%
  • No maximum loan amount, however, VA does limit its guaranty, Veterans can borrow up to $417,000 without a down payment in most of the country. Find out the limit in any county orstate by visiting www.benifits.va.gov/homeloans/
  • Published residual income guidelines to ensure Veterans have the capacity to repay their obligations while accounting for all living expenses.
  • No minimum credit score requirement: instead VA requires a lender to review the entire loan profile to make a lending decision.
  • Complete VA credit guidelines are published at www.benefits.va.gov/warms/pam26
How to I start the process?
  • 1st Signature Lending,LLC will help you. We will need a Certificate of Eligibility (COE) to prove your entitlement. Most Veterans can obtain the COE online through ebenefits (www.ebenefits.va.gov). 
  • Note; The VA appraisal is not intended to be an "inspection" of the property
  • A Veteran should get expert advice from a qualified residential inspection service.
Can VA help if I'm having trouble making payments on my existing loan?
  • VA loan technicians are trained to help Veteran borrowers retain their homes and avoid foreclosure. Call 1-877-827-3702 to speak to a VA loan Technician.

1st signature Lending LLC, is an independent mortgage lender and is not acting on behalf of HUD, the Federal Housing Administration, the Veterans Administration, the Rural Housing Service, any state entity, or the Federal government. This is not an offer to extend credit under Regulation Z. Equal Housing Lender. For individual state licensing information, please visit our website at www.1stsignaturelending.com