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Loan-Specific Requirements for a VA Purchase

We are here to help veterans purchase a home with the help of a VA purchase loan. These loans are designed to help veterans purchase a home with a competitive interest rate and no down payment requirement. 

As such, there are certain loan-specific requirements that must be met in order for a successful loan. We’ll go over the details of these requirements, as well as the funding fee for VA purchase loans and its impact on eligibility. 

So, if you’re a veteran looking to purchase a home, this article is for you!

What Is the Purpose of a VA Purchase Loan?

Sprint Veteran Loans, understand the importance of having a place of our own. That’s why so many of us choose to pursue VA purchase loans.

The purpose of a VA purchase loan is to provide veterans with home financing that’s backed by the U.S. Department of Veterans Affairs and offers benefits not available through traditional mortgage options. Some of these benefits include:

  • No down payment required
  • Lower closing costs
  • More lenient credit score requirements

VA purchase loans also come with additional protections, such as a limit on how much a lender can charge in closing costs and the ability to prepay your loan without a penalty. This allows veterans to save even more on their home loans.

These benefits make VA purchase loans an attractive option for veterans looking to purchase a home. With the help of a VA purchase loan, veterans can feel more secure in their home financing and enjoy the peace of mind that comes with having a home of their own.

Occupancy Requirement

Do I need to occupy the purchased property as my primary residence?

Yes. The VA purchase loans do come with a mandatory occupancy stipulation. Typically, the borrower must establish the purchased property as their primary residence and should move in within 60 days following the loan’s closure.

This requirement is designed with the principle that VA loans are intended to assist in obtaining homes for personal use, not for investment or secondary properties. However, allowances are provided for certain circumstances, notably for those who serve on active duty.

If a service member is unable to satisfy the occupancy criteria due to deployment or other service-related commitments, an exemption can be granted. 

In these specific situations, a spouse or dependent child may fulfill the occupancy obligation on behalf of the service member. This ensures that VA loan benefits are still accessible to those actively serving, acknowledging the unique circumstances of military life.

Loan Amount Limitations

You may be wondering if there are any limits on the loan amount for a VA purchase loan. The answer to this question depends on several factors, including the value of the home you’re purchasing and the area in which you live. 

Generally speaking, VA loans are available up to a maximum of $424,100, but in certain areas with higher costs of living, the loan limit can be higher.

If there’s still some portion of your VA-backed home loan entitlement left, it’s a good idea to check the current loan limits. These limits could impact how much you’re able to borrow without putting any money down. 

Keep in mind that as of the guidelines set in 2020, if you’ve got full entitlement, there’s no upper limit on your VA loan.

If you’re fortunate to have full entitlement, there’s no ceiling to your home loan amount

This applies to eligible veterans, active service members, and surviving spouses with complete entitlement – there’s no longer any cap on loans exceeding $144,000. 

This essentially means you can secure a home loan without having to worry about a down payment. 

The VA also requires that all borrowers have a valid Certificate of Eligibility (COE). This is a document issued by the Department of Veterans Affairs that verifies your eligibility for a VA loan. 

To obtain a COE, you must submit proof of your military service, such as a DD-214 or other discharge paperwork. Once you have your COE, you can use it to apply for a VA purchase loan.

What Is the Funding Fee, and How Does It Impact Eligibility?

We understand that the funding fee associated with VA purchase loans can be confusing. The funding fee is an additional cost associated with VA purchase loans and can affect eligibility for the loan.

Here are a few key points to consider:

Funding free computation for va loan

  1. The funding fee is a percentage of the loan amount, and it’s paid directly to the VA.
  2. The percentage of the fee varies depending on the type of loan, down payment, military service, and other factors.
  3. The fee can be paid with cash at closing, or it can be rolled into the loan amount.

It’s important to note that there are certain exemptions from paying the funding fee. 

These exemptions include certain veterans with service-connected disabilities, veterans receiving VA compensation for a service-connected disability, surviving spouses of veterans who died in service or from a service-connected disability, and some active duty personnel.

It’s important to understand the funding fee and how it can affect eligibility for a VA purchase loan. 

Knowing the details of the funding fee can help you make the best decision for your situation. It’s always a good idea to talk to a VA-approved lender to get more information and ensure you have the most accurate information.

Unlock the Door to Your Dream Home with Sprint Veteran Loans

Are you a veteran looking to purchase a home? Sprint Veteran Loans is here to help you navigate the VA purchase loan process and secure your dream home. With competitive interest rates and no down payment requirement, VA purchase loans offer exclusive benefits designed for veterans like you.

Don’t miss out on the opportunity to own your own home with the assistance of a VA purchase loan. Our team is ready to guide you through the loan-specific requirements, including the occupancy stipulation and loan amount limitations. 

We’ll help you understand the funding fee and its impact on your eligibility.

Take the first step towards homeownership today. Contact Sprint Veteran Loans and speak with our knowledgeable loan officers who specialize in VA purchase loans. 

Call Sprint Veteran Loans at 760-8498445 to learn more about VA purchase loans and start your journey towards owning a home.

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