November 12, 2024

The Basics of VA Loans: What Every Veteran Should Know 

At Citizens First Bank, we understand that homeownership is an important milestone, and for veterans and service members, a VA loan is an excellent opportunity to make that dream a reality. Thanks to the U.S. Department of Veterans Affairs (VA), veterans, active-duty service members, and their families can benefit from a unique mortgage program that offers several advantages, from no down payment to competitive interest rates. We’re proud to help our veterans navigate the VA loan process and support them on their journey to homeownership. 

What is a VA Loan? 

A VA loan is a mortgage option available to eligible veterans, active-duty service members, and their spouses. While the U.S. government doesn’t directly provide the loan, it guarantees it, making it easier for lenders like Citizens First Bank to offer more favorable terms. This guarantee helps provide veterans with access to home financing that comes with fewer barriers and better terms than conventional loans. One of the most appealing aspects of VA loans is that they often require no down payment, which can save you thousands upfront. 

Who Qualifies for a VA Loan? 

To qualify for a VA loan, you must meet certain service requirements. Here’s an overview of the eligibility criteria: 

1. Active-Duty Service Members: If you’ve served at least 181 days during peacetime or 90 consecutive days during wartime, you may qualify. 

2. National Guard or Reserves: Veterans who have served more than six years in the National Guard or Reserves may also be eligible for a VA loan. 

3. Surviving Spouses: If you are the spouse of a service member who died as a result of service-connected disabilities or while on active duty, you may qualify. 

At Citizens First Bank, we’re here to help you navigate the eligibility process and ensure you meet the specific service requirements. 

Benefits of VA Loans 

VA loans offer several advantages that can make homeownership more accessible and affordable: 

• No Down Payment: VA loans allow you to purchase a home with no down payment, which is often a major barrier to homeownership for many people. 

• No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans do not require private mortgage insurance (PMI), which can save you money every month. 

• Competitive Interest Rates: VA loans typically offer lower interest rates than conventional loans, which can result in lower monthly payments and more savings over the life of your loan. 

• Lower Closing Costs: Many VA loans allow for reduced or waived closing costs, which means less money out of pocket when you finalize your loan. 

• Flexible Credit and Income Requirements: The VA doesn’t set a minimum credit score, so it’s easier for veterans to qualify with a less-than-perfect credit history. At Citizens First Bank, we’ll help you understand your options and find the best loan for your situation. 

Property Requirements for VA Loans 

The VA has specific guidelines regarding the types of properties eligible for VA loans. The property must be your primary residence—VA loans can’t be used for vacation homes or investment properties. Eligible property types include single-family homes, condos, and multi-family homes, though manufactured homes may have additional restrictions. 

The VA Loan Process 

Applying for a VA loan is a straightforward process, but it’s important to have the right documents in place. At Citizens First Bank, we’re here to guide you through each step, from gathering your service records to securing your Certificate of Eligibility (COE). Once your eligibility is confirmed, we’ll work with you to explore loan options and help you find the home of your dreams. 

For more details on the VA loan process, you can also read our previous blog, Understanding VA Loans with Citizens First Bank: A Guide for Veterans. It covers everything from eligibility to loan terms and more. 

Citizens First Bank: Here to Serve You 

At Citizens First Bank, we take pride in supporting our veterans and service members. We know that homeownership is an important goal, and we’re committed to helping you take full advantage of the VA loan benefits you’ve earned through your service. Our experienced mortgage team is ready to assist you every step of the way—whether you’re buying your first home or refinancing an existing mortgage. 

Get Started Today! 

If you’re ready to explore your VA loan options or need help understanding the application process, contact a mortgage lender at your local Citizens First Bank branch. We’re here to help you make your homeownership dreams a reality. 

Citizens First Bank – Member FDIC and Equal Housing Lender 

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