Sonoma Home Loans

VA Loans

Military family with keys to a new home

VA Loans From Sonoma Home Loans.

VA loans are practical solutions for military families looking to buy their first home or wanting to refinance an existing mortgage. This type of home loan offers great benefits to military borrowers, such as lower interest rates and protection from default. The VA loan is guaranteed by the U.S. Department of the Veteran Affairs and is only available to service members.



VA loans were designed to help veterans and activity duty military members purchase homes. (Certain surviving spouses of veterans may also be eligible for a VA loan.) As a service member, you may not need a down payment (depending on the value of the home,) and you may get by without the added cost of private mortgage insurance. Your closing costs are limited and could be paid by the seller. There are no penalty fees when you pay off the loan early. If you struggle to make payments, you may be eligible for help from the VA.

Pros and Cons of VA Loan.

Understanding the pros and cons of a VA Loan and its financial impact will help you determine if this loan option is right for you.

Pros

No down payment needed.

Lower rates and costs

Several loan programs to choose from with lenient qualifying requirements.

Cons

Properties have to pass all section 1 pest clearance.

Some condos are not eligible for VA financing.

VA loans can have a funding fee.

You won’t have as much borrowing power due to VA loan requirements.

VA Loan Eligibility Requirements.

Eligibility requirements include a minimum number of active-duty service days that vary based on your status as a veteran or active, national guard, and reserve member. You must be an occupant of the home, and you must have proof of sufficient income to maintain the home, qualifying credit, and a valid Certificate of Eligibility.


Request a COE from a qualifying lender who will reach out to the appropriate personnel for you. You can also apply for the certificate on the VA website or complete a VA Form 26-1180 and mail the hard copy into the VA with proof of your eligibility.



If you haven't completed the required minimum service days, reach out for help. You may still qualify if you were discharged due to hardship, reduction in force, the convenience of the government, or certain medical conditions, for example.


American flag and house keys
Happy family in their new house

Is a VA Loan Right For You?

If you're ready to move into your first home or if you want to refinance your existing mortgage, a VA loan could be the solution you need. The beneficial features that make it easier to qualify and to repay the loan are available to you because of your time spent in the military, especially if your service has made it difficult to save for a down payment or establish a strong credit history.


Before settling on the VA home loan, however, it's best to weigh the pros and cons of this loan and the conventional home loan. Work with loan advisers and VA professionals to determine which loan is best in your situation.

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