VA HOME LOANS IN MN, SD, and WI
Why a VA Home Loan?
Simple... Lower interest rates, zero down payment, and NO monthly mortgage insurance.
If you are an active, or retired military, the VA home loan is one of the best benefits the governments gives you for your service to this country.
The VA mortgage loan extends not only to regular Army, Navy, Air Force, and Marines, but also to Reservists, and the National Guard.
Some of the Benefits of a VA Home Loan Program Are:
- Zero Down Payment (for loans up to $417,000) in MN, WI, SD
- NO monthly mortgage insurance (huge saving over other loans)
- Lower interest rates than many other programs
- Sells can pay your loans closing costs
- VA loans are assumable
- Easier qualifying guidelines than other loans
- No appraisal required streamline refinance program
Easier qualifying for a VA Mortgage
The VA home loan offers easier qualifying guidelines than many other loan programs. We offer VA loans with a middle credit score as low as 620. Bankruptcies, foreclosures, and short-sales can be as little just tw0-years old.
How to Apply for a VA Loan in MN, SD, and WI
Applying is easy. All we need to start is your basic application information, which we can take over the phone at (651) 552-3681, you can apply online, or stop in our St Paul, MN office.
Once we review the application, we can let you know how much house you can qualify to buy, what the payments will look like, and how much money, if any, you will need to make it all come together.
If that all sounds good, we will need to collect all your basic loan application documents, which include:
- Last two-years W2's
- Last 30-days of pay stubs
- Last 60-days of bank and asset statements (like 401k)
- Copy of your VA Certificate of Eligibility (get it here)
- Photo ID
Depending on your situation, we may need other items, like divorce papers, and proof of foreclosure or short-sale dates.
The VA Funding Fee
The Veterans Administration assess a Funding Fee to all VA loans that runs between .50% and 3.30% of the loan amount. This funding fee replaces standard monthly mortgage insurance that other loans have, and makes the VA loan much more affordable. If you have at least a 10% VA disability, the funding fee is waived.
The funding fee can be paid with cash at closing, the seller can pay it, or it can be rolled into the loan, and paid over time. Rolling it into the loan is the most popular options for paying the funding fee.
Paying for VA Loan Closing Costs
All mortgage loans have closing costs. These include credit reports, appraisals, title company fees, state and county recording fees, lender fees, and pre-paid items like pro-rated property taxes, and your first years homeowners insurance.
You can pay for your VA loan closing costs with cash, rolled into the loan (known as seller paid closing costs), rolled into the loans in interest rate, or any combination of all three. The most common option is the seller paid closing costs route.
If done correctly, between the zero down payment of the loan, and rolling the closing costs into the loan or interest rate, most of our VA loans are closed with less than $500 out of your pocket.
No Money Down Required up to $417,000 in MN, WI, SD
The VA home loan is a zero down payment program up to the maximum loan amount for the area the home is located. In Minnesota, Wisconsin, and South Dakota, this is currently $417,000.
You CAN buy a home with a VA Loan and have the loan over $417,000. If you do, there is a down payment required. The formula is a bit complex, but it works out to be about 25% of the actual loan amount, and $417,000. So for easy math, assume you buy a $517,000 home. You would need around $25,000 for down payment (25% of the $100,000 difference in this example). Call (651) 552-3681 for assistance in getting the exact amount needed for any house you plan on buying.
VA Loans are Assumable
VA loans are assumable. This means in the future, you can sell the home to someone else, and let them take over the loans remaining payments.
If the person buying the home is also a Vet, they can use their VA loan eligibility, which releases yours for possible use again. If the person is not military, your VA loan benefits are tied up until that person sells the home. You should take great care in deciding to let someone assume your loan, and you will need to talk to your current lender for determining the process.
The VA Streamline Refinance Program - IRRRL Loan
If you currently have a VA loan on your home, VA offers a program known as the VA Streamline Refinance. Officially known as the Interest Rate Reduction Refinance Loan ( IRRRL ), the program allows you to refinance without needing an appraisal, or a lot of the other documents normally required to refinance a home.
Ready to get your VA Loan?
Click here to apply, and have an answer in a few business hours!