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VA Loans

If you are a veteran or an active member of the Armed Forces, Timberline Mortgage can get your loan approved through the U.S. Department of Veterans Affairs. This type of loan works a bit differently from a Conventional or FHA loan.

Different Types of VA Loans

With a VA loan, we would need to determine what kind of loan you would need to get depending on your circumstance.

VA Direct Home Loan

This type of VA loan is done by working with the VA directly. Instead of going through a private lender, the U.S. Department of Veterans Affairs acts as the mortgage lender. Any and all approval for the loan, as well as paying it back, is done through them. This type of loan typically doesn’t require a credit score to get approved.

VA-Backed Home Loan

If you are already working with a private lender, it’s possible for the VA to still help out when it comes to even a portion of your loan. This type of VA loan works similarly to a USDA or FHA loan in that it is backed, or insured, by the particular agency, in this case, Veterans Affairs. Since this loan is still technically going through a private lender, there is still a credit requirement, typically a FICO score of 620 or better helps your chances.

Benefits Of A VA Loan

There are quite a few benefits to getting either a VA Direct Loan or VA-Backed Loan. This would include:

  • Lower interest rates
  • No mortgage insurance
  • Lower monthly payments
  • Possibility of a $0 closing cost

Basically, someone else is paying the costs of closing your home before you have to make your first payment. 

What Is Required To Get A VA Loan?

The most obvious requirement is that you need to either be an active service member of the Armed Forces or a veteran. But even that comes with some conditions, specifically how recently you served and for how long. Veterans who served in the Gulf War would have different requirements for those who served in Vietnam or Korea, for example. 

If those minimum service requirements aren’t met, there are exceptions that can be considered, such as Early Out Discharge, medical conditions, and so on. 

If you’re looking for more information about how you can qualify for a VA loan, contact us today!