For those who qualify, a VA (Veterans Administration) home loan is often one of the best financing options. A VA home loan typically offers an attractive interest rate and other perks. Our real estate agents get questions about VA loans, and we're glad to help you find the information you need to make an informed decision.

How Do VA Home Loans Work?

With a VA home loan, you can purchase most Atlanta homes for sale or other properties. VA loans are not provided directly by the federal government. Instead, they are insured by the government and issued by a "conventional lender," such as a bank. In exchange for a much lower risk, the lender offers better terms.

To service a VA home loan, the vendor must follow various rules, most of which are intended to be helpful to homeowners. For example, VA home loan holders may qualify for mortgage protections a conventional loan holder does not. Likewise, properties financed with this kind of loan are held to a high standard of safety.

Who Qualifies for a VA Home Loan?

Eligibility requirements for VA home loans can change on an annual basis.

To request a Certificate of Eligibility (COE), U.S. servicemembers must have:

• For active duty: At least 90 continuous days (meaning all at once, with no break) of service

• For veterans: The active duty requirement that pertains to your service period and rank

Veterans should consult the Veterans Administration page linked above to learn what minimum active duty requirement pertains to them. If you meet or exceed the minimum, you can request a COE, which you will present to your lender as part of your VA home loan application package.

National Guard and Reserve members can also qualify under their own specific requirements. If you were discharged for certain reasons, you may still be eligible for a COE even if you don't meet the standard that would otherwise apply to you. Those discharge reasons include:

• Hardship

• "The convenience of the government"

• Early out

• Reduction in force

• Certain medical conditions

• Service-connected disability

Why Choose a VA Home Loan Over a Conventional Loan?

Although it can take some time to get all your paperwork in order and originate a VA home loan, many of those who qualify for one decide to take it over a comparable conventional loan. These are a few of the key reasons:

• Competitive Interest Rates
  Although no one can say in advance that a VA home loan will have the lowest rates, they tend to offer rates substantially lower than the prevailing market rate. A lower interest rate translates directly to lower monthly payments and means you could save thousands of dollars over the life of your mortgage.
  
  
• No Down Payment
  A 20% down payment is considered standard for a conventional home loan. While 15% or even 10% can often be acceptable, the VA home loan stands out for zero down payment no matter the home's assessed value.
  
  
• Limited Closing Costs
  Generally speaking, you'll pay much less in closing costs as a VA loan homebuyer than you would if you used a conventional loan. You may also be able to use gift money or other funds to pay for your part of closing costs, which usually isn't allowed when you have a conventional mortgage.

A VA loan isn't necessarily the right choice for everyone. For instance, you can't use it to purchase a home on leased land or buy a home that needs certain repairs or improvements unless those are handled beforehand.

Contact us to get personalized advice directly from a real estate agent.