VA Home Loan

Thanks to the GI Bill of 1944, our nation's veterans, widowed military spouses, and active duty service members can apply for a VA loan to purchase a home. The program is designed to make it easier for qualified purchasers to gain the benefits of homeownership. VA mortgage loans are backed by the Department of Veterans Affairs, whose reporting shows that more than 740,000 loans were made in 2022.

Since the Veterans Administration itself does not provide the loan, you will need to choose a private lender that offers VA home loans, such as Space Coast Credit Union.

At SCCU, we make the application process as fast and easy as possible. You can apply now online or call our Express Services team to apply or get answers to your questions.

VA loans do have some costs associated with them, but they are similar to those with other types of mortgage loans. The differences are that some fees—such as settlement charges and fees for attorney services—are prohibited by the VA, and origination fees are limited. There is a funding fee that is paid to the Department of Veterans Affairs, which can be rolled into the loan. Typically, closing costs on VA loans are approximately three to six percent of the loan amount.

At Space Coast Credit Union, we keep you informed during every step of the loan application process, including letting you know within a few days of your application exactly what costs you will have.

The specifics may vary according to the home buyer and the lender they to obtain a VA loan, but in general, VA home loans offer these benefits and more:

• Homes can be purchased with no down payment⁵⁶.
• There are no costs for private mortgage insurance (PMI) because VA loans are backed by the federal government's Department of Veterans Affairs.
• Credit score requirements are more relaxed than with traditional mortgage loans.
• As long as the person who assumes the VA loan can qualify, the loans are assumable.
• VA loans don't have prepayment penalties.
• You don't have to be a first-time homebuyer, and the benefit can be reused when the mortgage is satisfied.

Whether it's a VA home loan, conventional fixed-rate mortgage, or adjustable-rate mortgage, interest rates on all types of mortgage financing frequently change. You can view current rates here.

If you satisfy the eligibility requirements for obtaining a VA mortgage, it's likely the best choice for financing your home. You may not need any down payment, you won't have to pay a private mortgage insurance (PMI) premium, and credit score requirements are not as stringent as they are with the majority of traditional or conventional mortgage loans. In addition, VA home loan rates are often lower than those on conventional loans, and buyers typically can qualify with higher debt-to-income ratios.

According to the Veterans Benefits Administration, fewer than 20 percent of VA loans are made with a down payment. These loans are generally considered zero-down home loans, and no down payment is required if the sales price of the property isn't more than the appraised value. At Space Coast Credit Union, eligible members may obtain 100 percent financing.

The VA does not require a certain credit score for VA loans since it does not finance the loan. VA mortgages are obtained through a lender which will have a credit score requirement. In most cases, a FICO score of 620 is required. At Space Coast Credit Union, there are no price adjustments based on credit scores, so you get the same favorable VA home loan rate no matter what your credit score is.

As stated on the Veterans Benefits Administration website, the majority of VA mortgage loans are managed by private lenders (such as Space Coast Credit Union). The VA guarantees or backs the loan, but does not involve itself in the approval process. The guaranty means that if you are unable to continue to make your loan payments, the lending institution will go to the VA to cover any losses.

The Department of Veterans Affairs sets the basic service requirements for VA loan eligibility. The guidelines include meeting one or more of these conditions:

• Active service: You've served 90 consecutive days of active service during wartime or 181 days of active service during peacetime.
• National Guard or Reserves: You have more than six years of service.
• Spouses: You are the spouse of a service member who died as a result of a service-related disability or died in the line of duty.

You may begin the VA loan process without a VA Certificate of Eligibility (COE) that verifies your service, but one will be needed as part of your VA home loan application.

Keep in mind that the private lender that finances your VA loan will also take its own set of criteria into consideration when reviewing your application. These factors may include your income, creditworthiness and debt. If you have questions about Space Coast Credit Union's VA loan application process and requirements, please reach out us.

As with any mortgage or other type of loan, the best VA home loan lender is the one that can help you meet your financial goals, whether that's owning a home or saving for the future. At Space Coast Credit Union, you get much more than a loan: You also gain all of the benefits of membership in the credit union, including Free Online and Mobile Banking⁶⁰, exceptional customer service, competitive interest rates, and more. When you establish your membership with our required primary Share Savings account, you become an owner with an equal share in the credit union.