VA Home Loans
Take the first step to owning your dream home!
Benefits of a VA Loan
Ideal Lending is helping veterans enjoy the benefits of homeownership. VA home loans have flexible qualification guidelines and other features not available with other programs. Benefits include 100% financing, no down payment, no monthly mortgage insurance, and much more!
- 100% Financing with no down payment
- No monthly mortgage insurance*
- Gift funds acceptable for closing costs
- Reduced cost for disabled veterans
- Not limited to first time home buyers
- Competitive fixed interest rate
*Borrowers may have to pay a funding fee
Get approved to buy a home.
Buying a new home or refinancing your current loan? Fill out this form and get started today!
VA vs. Conventional
Conventional loans require a minimum down payment of 3% but in many cases, particularly in today’s market banks are asking for as much as 10-20% down. Down payments help to mitigate the bank’s risk should the loan go into default. Because a VA Loan is backed by the federal government, banks do not require a down payment making a VA Loan one of very few loan programs that can still offer 100% financing.
Because the loan is backed by the government, banks do not require PMI (private mortgage insurance), an added monthly expense required for conventional loans where the borrower finances more than 80% of the home’s value.
Lenders may offer a slightly lower interest rate to a VA borrower (typically 0.5%-1.0% reduction vs. conventional). Interest rates are based on the banks capital risk should the loan go into default, but because a VA Loan is backed by the government the bank takes less risk and is able to offer a lower interest rate to you. A lower rate combined with no PMI can substantially lower your monthly payment, which may mean more cash in your pocket every month.
The credit score and qualification standards for each loan type are very different. Once again, because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans making them easier to obtain especially in this market.
Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time.
You do not have to pay the fee if you are a:
- Veteran receiving VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability
if you did not receive retirement or active duty pay, OR - Surviving spouse of a Veteran who died in service or from a service-connected disability
Why Choose a VA Loan?
In 1944 the U.S. Department of Veterans Affairs began assisting Veterans in the goal of becoming homeowners. Since then, the VA has guaranteed tens of millions of home loans. The VA does not actually lend the money, rather the VA promises to repay a portion of the loan to the lender if the borrower defaults.
- Number one reason Veterans choose a VA loan is that there is no down payment required.
- VA Loans tend to have lower interest rates than conventional loans, and they tend to be easier to qualify for as well.
- Because of the guaranty from the VA, lenders are much more likely to approve higher-risk borrowers.
Frequently Asked Questions
At Ideal Lending we understand that the loan process can be difficult to understand at times. Below is a list of our VA Loan FAQs to help you find the answers to your questions!
Absolutely, this is what we do!
Yes as long we have a DD-214 or Statement of Service we can retrieve your certificate of eligibility electronically
Yes, if the property which secured the VA loan has been sold, and the loan has been paid in full. Other circumstances may apply, please contact Ideal Lending Solutions for specific guidelines.
All VA loans have a “funding fee” which is financed on top of the loan amount. This fee negates the need for mortgage insurance.
Yes, but the other applicant must be a veteran as well.
No, you don’t. You can change your mind, and decide who you want to close your loan. Transfer of your loan is an easy process.
We will order an appraisal done by a licensed appraiser in your area.
Yes, you can, provided your deceased spouse died in the line of duty or from a service related cause.
Sure, call Ideal Lending Solutions at (844) 994-3325 to speak to one of our VA Loan experts.
We can do everything over the telephone or in person at one of our branches in West Palm Beach, Boca Raton, Jupiter, Miami, Cocoa Beach, or Charlotte, NC.
