- VA Loan:
If you are considering a VA Home Loan and are looking to buy a home in the Houston metro area, we can help you! Mike Durr leads our team assisting Veterans statewide with their VA Home Loan financing. If you are in the Houston metro area you can always call and set an appointment to meet with Mike face to face, (most of our Vets prefer the eyeball to eyeball meetings) or use our “state of the art” 100%, Secure online application, email, digital documents, and Federal Express when we need it. We can guide you and determine if a VA Loan is right for your situation, regardless of what part of Texas you live in.
Prior to you searching for a home in the Houston Metro area, we suggest you get pre-qualified for a VA Loan. This will give you information that will tell you what the right price range is for your financial situation. When you find the right home to make an offer on, you’ll be prepared with a pre-qualification letter that the home seller and their listing agent will require prior to entering into a contract.
If you would like to start the pre-qualification process right away, look for the big Red Button in the upper right corner of our home page that says Mortgage Application on our website. Or, if you have a few questions before getting started, give Mike Durr a call at 281-348-9899, or fill out the short form to the right and we’ll contact you, to answer any question you may have.
Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
Here’s how it works:
- 100% financing without private mortgage insurance or 20% second mortgage.
- A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
- When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
- When refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.
There are eligibility requirements in order to qualify for a VA home loan.
The surviving spouse of a veteran is eligible for a VA Home loan as long as the spouse stays single until age 57; they can remarry after age 57.
The spouse of a totally disabled veteran who died from this condition may also be eligible.
Veterans and the eligible spouse are required to have a copy of their DD-214. They can get the Certificate of Eligibility online or contact a local VA office for additional information.
Additional information regarding a VA loan is available here. Please contact Mike Durr, our VA Home Loan Specialist at (281) 348-9899 for more information.
How Do I Prove to the Lender that I’m Eligible?
You’ll need a Certificate of Eligibility before you can get a VA-backed loan. This section shows how you can apply for one.
Veterans, Active Duty, and Reservists/National Guard Members Who Have Served on Active Duty
You can get a Certificate of Eligibility in any of three ways:
1. Apply online. Go to the Veterans Information Portal (http://vip.vba.va.gov) and click on User Registration. For more information, click on this link for user instructions for applying online.
2. Apply through the lender. In many cases, lenders can obtain a Certificate online in minutes. Check the table below entitled, “Evidence Needed for the Certificate of Eligibility.”
3. Apply by mail. Use VA Form 26-1880. Return it to the address shown on the form. If you can’t print the form, just call 1-888-244-6711 and follow the prompts for Eligibility. We can mail it to you.
• Served 90 Consecutive Days During War
• Served 180 Days without Being Called to Active Duty
• Served at Least Six Years in National Guard
• Military Spouse Died During Active Duty or as a Result of Military Disability.
• Honorably Discharged without meeting these qualifications or Reserves.
The VA loan requirements are a bit different than the requirements for other types of traditional lending options, but for the right people these loans can be excellent choices. If you decide you should be applying for a VA loan or another type of option, you’ll want to understand the VA loan funding fees and other specifics about getting a loan that’s backed by the Veterans Administration. If you’re currently in the military, you’ve been in the military in the past, or you’re the surviving spouse of someone who served, you may be eligible for a VA loan. That’s not the same as qualifying, but it’s a starting point.
Understanding Texas VA Loan Requirements
Before you apply for this type of loan, you’ll want to confirm you meet the VA loan requirements. These determine whether you’re eligible, so you can proceed to working with a lender who will let you know if you can qualify for the loan you want based on your credit score and other factors. There are four main conditions that can allow for eligibility, and you will need to meet one or more of those.
Those conditions are:
• Serving at least 90 days of active duty during wartime.
• Serving at least 181 days of active duty during peace time.
• Serving in the Reserves or National Guard for six years or more.
• Being the spouse of a military member who has died of a service-related disability or in the line of duty.
If you meet at least one of those conditions, applying for a VA loan may be for you. However, there are still other requirements that will have to be met. Those are based on what your lender needs from you, along with other VA loan requirements focused on your credit score and your debt-to-income ratio (DTI). For VA loans, most lenders require a minimum credit score of 620 and you will need to have a DTI of 50% or less with the new loan payment included. There are exceptions, but they don’t involve most borrowers who are interested in a VA loan.
The lender may have additional requirements that will need to be met, and that can mean you’ll need a higher credit score or a lower debt factor than what the VA actually requires. Make sure you talk to your lender about their specific requirements, so you don’t waste your time applying with a financial institution that’s not able to help you.
As with any loan, you’ll need stable and reliable income. Enforcing income and DTI requirements helps to ensure that borrowers have a lower risk of defaulting on their loan. The foreclosure rate for VA loans is less than for other loan types used to finance a home. If you’re curious about your qualifications, or you’re worried that your credit score or debt situation may be a problem, calling or visiting Mike Durr can help you determine exactly what you can qualify for, so you can start looking for a home in your price range.
What to Expect From the VA Loan Funding Fees
Let’s talk about the VA loan funding fees that you will be required to pay. With a no down payment VA loan, a military member will be required to pay a 2.15% funding fee for the first home loan of the VA loan program, and a 3.3% fee for subsequent uses. If you have a down payment, you’ll pay a lower fee, and the cost for a subsequent use will be the same as the cost for a first use. The fee for five to nine percent down is 1.5%, and the fee for 10% down and up is 1.25%.
For those who are or have been part of the Reserves or National Guard, the fees start at 2.4% for the first use and 3.3% for subsequent uses. They are capped at 1.75% for a five to nine percent down payment, and 1.5% for a down payment that’s 10% or higher. By understanding the VA loan funding fees, you can make an informed decision as to the type of loan that will work best for you. While a VA loan can be an excellent choice if you’re current or past military or a surviving spouse, they aren’t for everyone. Compare your VA funding fees and other costs to other types of loans, with Mike Durr and you can get the best deal for your needs.
Since 1997 Mike has closed well over 1000 Conventional, FHA & VA Loans personally. Mike has helped Veterans and other borrowers in almost every possible circumstance including very tough credit situations.
Questions about VA Loans?Contact Mike today! Local mortgage lender servicing Kingwood Tx, The Woodlands Tx, Cypress Tx, Houston Tx, Katy Tx, Spring Tx, League City Tx, Tomball Tx, Humble Tx, and Pearland Tx. Call us on (281) 348-9899.