What is a VA Home Loan?
VA loans are loans that are guaranteed by private lenders (including banks and mortgage companies) as well as the official Department of Veterans Affairs, also known as the VA. VA loans are useful for those who are actively serving in the military, veterans who have served in the military, as well as widows of spouses who have been killed in action or who have gone missing while serving. A Delaware VA loan can help with reduced interest rates and increased loan flexibility, which can streamline the process of applying for any new VA mortgage loans in Delaware itself.
Types of VA Home Loans
In Delaware, as well as in all other states in the US, there are three types of VA mortgage loans, including:
VA Purchase Loan
A VA purchase loan is one of the most common loan types available for those interested in Delaware VA mortgage loans. A VA purchase loan is a standard loan from the VA available for qualifying active service members and veterans who are interested in purchasing a brand-new home with no down payment.
VA Cash-Out Refinance Loan
A VA Cash-Out Refinance Loan in Delaware is a loan that allows those who qualify to refinance their current loan and pull equity out of the home. The VA Cash-Out Refinance Loan also works by replacing an existing loan that has already been approved and processed by the VA.
VA Streamline Refinance Loan
For qualifying applicants who already have a mortgage through the VA, a VA Streamline Refinance Loan (IRRRL) may be the most optimal choice, especially for anyone interested in refinancing. A VA Streamline Refinance Loan is useful to refinance with lowered interest rates and with reduced requirements. No out-of-pocket costs are required and those who qualify can forego pest inspections as well as income qualification requirements.
VA Home Loan Benefits
A major benefit of taking out a VA loan Delaware is the reduced VA rates that come along with approved loans. Those who qualify for a VA loan Delaware can also take advantage of the following benefits:
- Zero down payment is required for individuals who are eligible for a VA loan.
- VA loans typically have much lower interest rates than standard loans from traditional lending avenues, such as local banks and mortgage companies.
- A portion of the loan that is approved is guaranteed by the VA, or the Department of Veterans Affairs.
- The approved loan can be used to invest in a variety of properties, from single-family homes to condominiums and duplex-style residences.
- For those who qualify, it is possible to cash out between 90% and 100% of the property’s total value (depending on the type of loan that has been approved as well as the individual’s personal qualifications).
- No penalty for those who are interested in paying off their mortgage before the loan period has ended.
- Eliminates the need for applicants to obtain private mortgage insurance while investing in a new home.
Who is eligible for a VA Home Loan in Delaware?
Before you apply for Delaware mortgage loans, you will need to determine your current eligibility. While most VA loan eligibility requirements are similar throughout the US, there are a few Delaware-specific requirements to keep in mind.
- You will need to provide a Certificate of Eligibility in order to qualify for a Delaware VA loan.
- You will need to meet the minimum active-duty or completed duty requirements, which include serving at least 90 days during wartime or 181 during peacetime.
How Do Delaware VA Home Loans Work?
Delaware VA home loans are approved by private lenders (including banks and mortgage companies), while also providing a portion of the home loan as guaranteed by the VA itself, or the Department of Veterans Affairs. The guarantee provided works as a substitute for a traditional down payment, which helps those who qualify to obtain the loan they need for housing.
In Delaware, the average appraisal price for an individual single-family home is approximately $600 each. In most cases, a completed appraisal requires around 10 business days in total.
Home appraisals are necessary for anyone who is interested in a VA loan. All VA loans in Delaware require applicants to obtain an appraisal for the home(s) they are interested in purchasing. Appraisals help to ensure a fair market value for homes while also providing a guarantee that a property meets the current standards and requirements for new properties by the Department of Veterans Affairs itself.
What is the VA Loan Limit in Delaware?
As of January 1st, 2020, the total VA limits were eliminated with the Blue Water Navy Vietnam Veterans Act (of 2019). However, there are still loan limits for veterans and active service members who are interested in loans with $0 down payments or for those who already have one or more existing loans that have been approved by the Department of Veterans Affairs.
The average VA loan limit for those who are active service members or veterans in the US is $647,200. However, individuals who reside in states that have a higher cost of living may be permitted to receive a loan of up to $970,800 as of 2022 (in locations such as New York City, San Francisco, and Honolulu, Hawaii). In the state of Delaware, the current loan limit is approximately $647,200.
Apply for a VA Home Loan in Delaware Today
Applying for Delaware VA home loans does not have to feel confusing or overwhelming, especially with the help of Griffin Funding. At Griffin Funding, we help veterans, active service members, as well as widowed spouses to get the VA loan they need for any new home investment or purchase. For more resources about Griffing funding VA loans, visit the official Griffin Funding website.
To begin the application process for a VA loan in Delaware, visit Griffin Funding today. Griffin Funding also partners with Shelter to Soldier, helping to give back to active service members and veterans from around the world each and every day.