Financing a property with no down payment is still possible for Las Vegas buyers who are eligible for a VA Mortgage Loan.
And even though we have Nellis Air Force Base located in North Las Vegas, it’s amazing to me how many local real estate agents lead their first-time home buyers to believe that they can only get qualified for a mortgage if they have high credit scores and a 20% down payment.
The truth is that taking out a VA mortgage loan on a new home purchase is fairly straightforward, relatively easier to qualify for than a conventional loan, generally comes with lower interest rates, doesn’t require mortgage insurance and can be financed up to 100% of the purchase price.
The Basic VA Loan Approval Process:
- Meet with a qualified mortgage officer to get a pre-approval letter, discuss closing costs and payment options and get a list of items needed for full loan approval.
- Find the property you would like to buy and arrange the purchase with the seller. You’ll then sign a purchase contract conditional upon approval of a VA guaranteed loan.
- Choose your lender, present your Certificate of Eligibility, and finish the loan application. Your lender will determine your credit and submit a request to the VA to dispatch a licensed appraiser to evaluate the value of the property.
- If the determined value is acceptable to all involved parties, and the lender determines that your loan application meets the VA loan requirements, your mortgage can be approved.
- You (and co-borrower, if applicable) will then attend the loan closing and sign the related papers. The closing escrow agent or attorney will explain loan terms and requirements and monthly payment details.
Please note that when the VA receives a report of the loan, the Certificate of Eligibility is adjusted to reflect use of entitlement and is then returned to the veteran.
No further actions are required to get your COE back, which just makes the overall process easier for veterans
There are a few unique aspects and conditions to getting approved for a VA Loan, which is why it’s important to make sure your loan officer has experience closing VA Mortgage purchase transaction.
Income, assets, credit scores and appraisal requirements are a few of there areas that can cause a delay or result in a denied loan if your lender is unfamiliar with the recent VA guideline changes.
I’ll actually be writing extensively about the VA mortgage program over the next few months to help educate our Las Vegas veterans and VA eligible home buyers about some of the unique advantages available with VA loans.