What Is a VA Home Loan?
A VA home loan or mortgage is insured by the Department of Veteran Affairs. This was part of the GI Bill of Rights, included in the original Servicemen’s Readjustment Act in 1944. This provision created federally guaranteed homes with no down payment for veterans. It was also designed to offer housing and assistance, creating a reality of homeownership for veterans and their families.
There are multiple benefits in qualifying for a VA home loan, including:
- No down payment
- Low interest rates
- Limited closing costs
- NO PMI (private mortgage insurance)
- Flexible loan requirements
- Can have non-spouse family member added for VA joint loans
- It can be used to purchase different types of properties
- Funding fees are financed in the loan or waived
- No penalty for early payoff
- Cash-out of home value up to 100%
VA loans are very affordable as they do not have additional costs such as PMI. This helps borrowers remain focused on their other financial obligations.
Areas We Serve
We serve VA loans Illinois homebuyers in the following cities and locales:
- Gold Coast
- Clarendon Hills
- Lincoln Park
- Arlington Heights
If you are looking for a home, Griffin Funding can assist.
What Are the Requirements for a VA Loan in Illinois?
An Illinois VA home loan requires the borrower to be a current service member, surviving spouse, or veteran. A Certificate of Eligibility (COE) is also required, with a minimum FICO score of 500. There are also some income qualifications to meet.
The benefits of having a VA loan are huge. These types of loans help create more disposable income, especially with a VA home loan or refinance with Griffin Funding.
There are different types of VA loans offered at Griffin Funding that include:
- VA Purchase Loan
These are for new service members or veterans looking to purchase a new home. The terms are much better than traditional financing and the process is smoother.
- VA Cash-Out Refinance Loan
This loan is for qualified active-duty service members and veterans, allowing them to refinance their existing VA or conventional loan while getting cash from the existing equity. This loan replaces the existing mortgage. Homeowners who qualify can refinance up to 90% of the home’s value or refinance a lower percentage and use the additional cash for debt or other financial obligations. Up to 100% refinancing of the home’s value is available at a higher interest rate.
- VA Streamline Refinance Loan
This interest rate reduction finance loan is a great option for homeowners who already have a VA loan and are looking to refinance for a lower monthly rate. This refinance is easy and quick because it’s one VA loan to another. There are quite a few advantages of this refinance loan, including no pest inspection, no income qualification, no COE, and in some cases, no appraisal. The out-of-pocket costs are also little to none.
There are some things to consider when pursuing a VA home loan. The rates are set by the lender, not the VA. Additionally, the interest rate is based on income, credit score, and the length of the loan. Rates can fluctuate based on the market, and they vary depending on the type of VA loan being applied for.
Griffin Funding can save you money over time with competitive interest rates on your mortgage loan.
What Is the Minimum Income for a VA Loan?
The minimum income required by IL home loan lenders for a VA loan is based on the Department of Veterans Affairs residual income clause. They will not back a loan if the service member, surviving spouse, or veteran does not meet or exceed the minimum residual income threshold that varies based on household size and cost of living in the area.
What Is the VA Loan Limit in Illinois?
What is a VA loan limit? This is the amount the Department of Veteran Affairs will guarantee with no down payment. They do not limit the amount you can borrow but set the amount you can finance with no money down.
In some cases, the VA loan limits are eliminated due to the Blue Water Navy Vietnam Veterans Act of 2019, which provided veterans and service members full entitlement to VA loans. Service members and veterans who have defaulted on VA loans, or those with one or more active VA loans, have loan limits.
In a typical U.S. County, the loan limit for 2022 is $647,200 but may vary according to the area in which the home resides.
For individuals who do not meet the qualifications of a VA home loan, Griffin Funding offers other options and Non-QM loan mortgage products like:
- Interest-only home loans
These loans are interest-only and can be 40-year or 30-year fixed, 6-Month ARMs, 3-year ARMs, 5-year ARMs, or 7-yearARMs. The payments during the first 10 years of the loan are only applied to interest. Once the 10-year period has passed, the mortgage is recalculated, and payments are distributed to the principal.
- Recent credit event loans
These types of loans can be facilitated by Griffin Funding if there is a VA-to-VA refinancing. Foreclosures, short sales, and bankruptcies are still able to qualify.
Apply for a VA Home Loan in Illinois Now
When you’re looking to qualify for a VA home loan in Illinois, your best mortgage lending option is the team at Griffin Funding. Don’t put your dream on hold any longer! Complete an application and one of our lending officers will help begin the process.