In 1944, the Servicemen’s Readjustment Act was passed to offer a number of benefits to veterans or their surviving spouses. One of these benefits, the VA loan program, was designed to help American veterans purchase a home in situations where alternative financing was difficult to obtain. The U.S. Department of Veterans Affairs (VA) guarantees home loans, making it possible for Arkansas veterans to receive very favorable rates and terms compared to other mortgages. At USA Mortgage – NWA Home Lending Team, we are proud to provide Arkansas veterans with some of the best rates and terms on VA loans throughout Rogers, Fayetteville, Bentonville, and Centerton.
Most veterans, military, and spouses of deceased military members are eligible to apply for a VA loan. Eligibility varies depending on service status. Active-duty members become eligible after roughly 6 months of service while members of the National Guard and reservists will reach eligibility after 6 years. If called to active duty, eligibility will be reached after 181 days. Anyone who intends to apply for a VA loan will need to acquire a Certificate of Eligibility (COE). Obtaining your COE as early as possible will help to avoid delays during the application process.
VA Loan Benefits
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- Closing costs are limited by VA regulation
- Up to $417,000 loan amount (certain counties may be higher)
VA Loan Limits by County
VA loans can be used for the purchase of a new home and current VA loan holders can take advantage of refinancing options. Purchase loans provide veterans with competitive mortgage options for the purchase of a new home. Cash-Out Refinance Loans allow current homeowners to utilize equity in their homes to obtain extra cash which can be used for various expenses such as home improvements, remodeling, or high-interest debt consolidation. Veterans can utilize and Interest Rate Reduction Refinance Loan (IRRRL) to improve the interest rate on their current VA loan. IRRRLs are also referred to as VA Streamline Refinance Loans.
The VA does not have a minimum credit score requirement however, lenders typically require a score of 620 or higher. Lenders may offer a bit of flexibility when it comes to credit scores, but lower scores may mean a higher interest rate is charged. To verify your income, be prepared to provide W2 statements and pay stubs during the application process. Documentation of assets such as checking accounts, savings accounts, and other financial investments will also need to be submitted.
At USA Mortgage – NWA Home Lending Team, we are proud to help veterans throughout Arkansas achieve their homeownership goals. Whether you are a located in Rogers, Fayetteville, Bentonville, or Centerton, we are proud to serve you. For more information on Arkansas VA loans or to begin the prequalification process, contact us today.