What is a VA Loan?
Welcoming Veterans Home
Here at Elite Group Mortgage, we are proud to help our Service Members and Veterans achieve the American Dream of homeownership.
Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.
VA Loan Highlights
Since VA loans often require no down payment* with lower closing costs, you can help keep your savings secure. VA loans also feature:
- No prepayment penalties
- No private mortgage insurance (PMI)
- 100% financing with full VA entitlement*
- Fixed- and adjustable-rate mortgages
- VA financing fees can be “rolled” into the loan amount
- Variety of eligible property types, including townhomes and VA-approved condos
*A down payment is required if the borrower does not have full VA entitlement, or if the loan amount is greater than $424,100
VA Loan Eligibility
To be eligible for a VA loan, you must first obtain a valid Certificate of Eligibility (COE). Your COE is based on length of service or service commitment, duty status, and character of service.
VA Loan Programs
If you are currently serving in the military with a chance of relocating in the next few years, the flexibility of an adjustable-rate mortgage (ARM) could be the right option for you. ARMs offer lower introductory interest rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing.
Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30- or 15-year loan term. The main difference is the 15-year option has higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.
If you’re already a homeowner, a cash-out refinance may help you pay for major expenses like college tuition, debt or home improvements. This option allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. You can also refinance a non-VA loan into a VA loan with a cash-out refinance.
Interest Rate Reduction Refinance Loan
An interest rate reduction refinance loan (IRRRL) may help lower your interest rate and reduce your monthly payments by refinancing your existing VA loan. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage with this option. However, you cannot receive cash from loan proceeds with an IRRRL.
If you are interested in an adjustable-rate mortgage, please contact an Elite Group Mortgage Professional.
Other Loan Options
USDA / Rural
Best if you are wanting to purchase a home in USDA-designated rural areas.
Best if you have good credit and a larger down payment to possibly receive lower rates with more flexible terms.
Best if you are wanting to purchase a property above the conforming loan limits ($453,100 in most areas).
Elite Group Mortgage Expert
Elite Group Mortgage offers home purchase and refinances loans. We are headquartered in Grand Junction, Colorado. Elite Group Mortgage is dedicated to helping you achieve your home financing goals. Equal Housing Opportunity.