VALOANSMN.COM

VALoansMN.com

You’ve served our country, now let us serve you.

We may be in a very stressful time but please be assured, we are here to help. Despite current conditions we are still helping Veterans with all your home financing needs. We will all get through this together! The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any down payment at all. Aside from the veteran's certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. We also promise to give you the respect you've earned.


We understand purchasing or refinancing a home is a very important decision. Here is our commitment to you; we will be with you every step of the way. VALoansMN and Luminate Home Loans are dedicated to helping you achieve your American Dream!

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So, what is a VA home loan?

A VA loan is made by a lender (like Luminate), or a bank (also like Luminate) that is funded by the Veteran's Association. The VA guarantees that the loan will protect the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms.


The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn't previously used the benefit may be able to obtain a VA loan up to $417,000 ($625,500 for loans in Hawaii, Alaska, Guam and U.S. Virgin Islands), depending on the borrower's income level and the appraised value of the property. Your VA Regional Loan Center can provide more details on guaranty and entitlement amounts.


What does that mean for homebuyers?

More than 27 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:


  • Most important consideration, no down payment is required in most cases
  • Loan maximum may be up to 100% of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000 ($625,500 for loans in Hawaii, Alaska, Guam and U.S. Virgin Islands). This figure is subject to change each year
  • Flexibility of negotiating interest rates with the lender
  • No monthly mortgage insurance premium to pay
  • Limitation on buyer's closing costs
  • An appraisal, which informs the buyer of estimated property value
  • Thirty-year loans with a choice of repayment plans
  • Traditional Fixed Payment: Constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage
  • Graduated Payment Mortgage (GPM): Low initial payments which gradually rise to a level payment starting in the sixth year
  • Growing Equity Mortgages (GEM): Gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan
  • Hybrid ARMs: VA is authorized to guarantee hybrid ARM loans where the initial rate remains fixed for at least 3 years. The initial adjustment can be as much as 2% if the fixed rate period is 5 or more years. Annual adjustments thereafter are limited to 1% if the fixed rate period is less than 5 years, and 2% if the fixed rate period is 5 or more years. If the fixed rate period is less than 5 years, the initial adjustment is limited to 1% and the annual cap to 5 percentage points
  • Traditional ARM Loans: VA can also guarantee traditional 1-year ARM loans where the rate is adjusted annually. Annual adjustments are limited to 1% and the maximum interest rate increase over the life of the loan is limited to 5 percentage points
  • New homes, which are appraised before or during construction, are inspected to help ensure compliance with the plans and specifications used for the appraisal and with VA minimum property requirements. All new houses, regardless of when appraised, are covered by either a 1-year builder's warranty or a 10-year insured protection plan
  • An assumable mortgage, subject to VA approval of the assumer's credit
  • Right to prepay loan without penalty
  • VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties

WHAT ARE THE BENEFITS OF A

VA Loan vs. Any Other Loan?

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

0% Down Payment

Thanks to your service, there’s no minimum down payment!

No Mortgage Insurance

With a VA loan, there’s no monthly mortgage insurance.

Fewer Restrictions

Having trouble meeting the qualifications for a regular loan? A VA loan is much more flexible.

Disabled Veteran Benefits

Veterans considered at least 10% disabled by the Veterans Administration are exempt from the VA Funding Fee.

Discounted Closing Fees

The maximum seller paid closing costs is only 4%.

Various Loan Types

VA loans can be used for a variety of home options, including mortgages and refinancing.

Do you quality for a VA loan?

If you don’t know the answer to this question, that’s completely okay! Brad Christensen is a VA Home Loans expert and will be happy to go over the details with you. Typically you’ll need to meet the minimum VA loan requirements for your specific length of active duty, but check out the eligibility requirements and then get in touch with us with any questions.

See If You Qualify

VA Property Guidelines

  • Structure of home must be sound
  • Property must have own water heater
  • Working septic system
  • No leaks in the roof
  • No evidence of termites
  • No peeling or chipping paint

Your new home is waiting. Let's get you in there.

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Still unsure if a VA loan is right for you?

Veterans seeking more detailed information concerning the VA home loan program may request VA Pamphlet 26-4, VA-Guaranteed Home Loans for Veterans, or VA Pamphlet 26-6, To the Home-Buying Veteran, from VA.

Remember, VA-guaranteed financing is a benefit which Congress intended eligible veterans should have. If you are a veteran home buyer or know of one, it makes sense to look into the VA loan program as a good way to finance a home purchase.

To locate a VA facility, or to obtain more information on the VA Loan Guaranty program, visit www.va.gov and click on Facilities Locator.

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