Overview of the VA Loan Las Vegas Program
The Department of Veterans Affairs frequently guarantees home loans for veterans through private lenders. If you are an active-duty military service member, National Guard member, reservist, veteran, or a veteran’s surviving spouse, you could qualify for a VA loan. VA loans can save you money and help you overcome a rocky credit history. You could achieve home ownership in Las Vegas with this program.
VA Loan Requirements & Program Highlights
- Loan guarantees up to 100 percent
- Possibility of no down payment
- VA finance fees rolled into loan balance
- No private mortgage insurance necessary
- No minimum credit score
- Fixed or adjustable-rate mortgages
- Property choices, including town homes and condos
- No penalties for prepayment
Certificate of Eligibility
A Certificate of Eligibility obtained from the VA will explain your full or partial eligibility for VA loan benefits. Factors such as your time in the service, continuing expectation of service, duty status, and type of service will influence your eligibility.
If you are on active duty, you will become eligible after six months of service. If you are a reservist or National Guard member, then you will generally qualify after six years. A call to active duty, however, will reduce your wait time to 181 days. You could also apply for a VA loan if you are a spouse of someone killed during active duty or who died because of a disability caused by military service.
You can fill out an online form to request your Certificate of Eligibility. A Fairway loan consultant can assist you with this as well.
In many cases, you can finance a home purchase without a down payment. Although restrictions apply, the ability to avoid or limit a down payment could enable you to move ahead with a home purchase more quickly.
The extent of your VA entitlement will influence whether or not you qualify for 100 percent financing. The price of a home might also exceed the limit set by the VA for a full loan guarantee. For example, you would need a down payment with a mortgage for an amount above $424,100.
The loan guarantees provided by the VA grant lenders greater flexibility. Although a lender must still evaluate your income and debts, backing from the VA lowers the hurdles compared to the requirements for a conventional mortgage loan.
No Mortgage Insurance
With a VA loan, you can skip the ongoing expense of private mortgage insurance or PMI. Conventional mortgages require PMI unless your down payment is at least 20 percent of the home price. As a veteran, you could easily save approximately $100 a month by avoiding PMI.
Credit Score Flexibility
The VA loan Las Vegas program does not specify a minimum credit score for borrowers. The lender, however, will have underwriting standards, but credit scores need not be exceptional. Additionally, veterans who have experienced a foreclosure or bankruptcy can still apply for a VA home loan. (Read more on the pros and cons of home equity loans.)
Choice of Mortgages
You will have the freedom to choose an adjustable-rate or fixed-rate mortgage. Your circumstances and goals will determine your choice. An adviser at Fairway can help you compare financing costs and payment amounts.
An adjustable-rate mortgage with a low introductory interest rate could save you money in the short-term. If your military service requires that you move in a few years, then you might sell your home before an adjusted monthly payment becomes a concern.
With a fixed-rate mortgage, you will know the precise interest rate for the entire duration of the loan. This form of financing results in an unchanging monthly loan payment. This predictable cost might attract you whether you plan on moving soon or not. Under the VA program, you can opt for a 30-year or 15-year loan.
If you are a veteran who already has a mortgage, you can also leverage your VA benefits to refinance. A cash-out refinance would let you take advantage of home equity and gain cash for a major expense. An interest rate reduction loan could enable you to lower your monthly payments.
At Fairway, we welcome the chance to meet the home financing needs of veterans in the Las Vegas area. Contact us today to learn more about VA loans.