What is a VA Home Loan?
The VA loan came about toward the end of World War II when congress passed the GI Bill of Rights. These borrower-friendly loans helped returning service members participate in an expanding wave of homeownership in the postwar decades. Millions of veterans have taken advantage of these zero-down mortgages to purchase homes for their families, and service members and veterans still enjoy this benefit today.
Types of VA Home Loans
Many eligible borrowers use VA loans for the initial purchase of a home, but that’s not the only option. Consider these three types of VA loans:
- The VA Purchase Loan is available to buy a new or existing home or to build one. It can also be used to improve your home. It applies not only to detached homes but also to manufactured homes, condominiums in a VA-approved project, and lots where the borrower plans to build.
- The VA Streamline Refinance Loan (IRRRL) is also referred to as the VA streamline refinance. You can use it to replace an existing VA Loan. Borrowers use these to obtain better terms than their original loan when their creditworthiness has improved, or interest rates have dropped in the market.
- The VA Cash-Out Refinance Loan can turn a home’s equity into spendable cash. As with any refinance, it can be used to replace not only VA loans but conventional and FHA loans as well. It’s often the most cost-effective way to lay your hands on ready cash to consolidate debt or deal with unexpected expenses such as medical bills.
VA Home Loan Benefits
The benefits of VA home mortgages start with the famous zero down payment, but they don’t end there. There a plenty of other reasons to consider them:
- Qualifying requirements are typically more flexible.
- The purchase of private mortgage insurance is not required.
- VA loans usually have lower interest rates than other mortgages.
- Closing costs are often lower.
- There’s no restriction on selling your home. In fact, if you sell to a VA-eligible buyer, they can either take over your mortgage or get their own.
- You can borrow up to 90 percent of the home value for a cash-out refinance. Sometimes you can borrow 100 percent.
Who is eligible for a VA Home Loan in New Hampshire?
As with any loan, you have to qualify under the mortgage lender’s standards. The VA doesn’t impose a minimum credit score, but most lenders want to see a score of 620 or higher. If yours is lower, that doesn’t mean you’re out of luck. Often an experienced mortgage lender can work with you to make the mortgage possible, for example, by helping you improve that score.
In addition, you must obtain a certificate of eligibility (COE) for VA home loans in New Hampshire. A COE is available for active service members who have completed at least 90 consecutive days on active duty. For veterans and members of the national guard or reserves, the required length of service varies. It depends on the dates when the service took place.
Your mortgage lender may be able to use an online system, Web LGY, to obtain your COE. Alternatively, you can get it yourself by completing and submitting a VA form known as Request for Certificate of Eligibility.
How Do New Hampshire VA Home Loans Work?
VA loans are made by the same institutions that write conventional and FHA mortgages: banks, credit unions, and other mortgage lenders. The VA guarantees part of the loan to substitute for the down payment. The lender isn’t at risk for that money and will get reimbursed by the VA if the loan defaults.
For VA loans NH, certain counties – Belknap, Cheshire, Hillsborough, Merrimack, Rockingham, Strafford, and Sullivan – require a termite inspection. That’s because termites are an insidious problem, and a trained pest inspector can spot issues that may be overlooked by non-specialists.
An appraisal is required for VA mortgage loans in New Hampshire, and it must be conducted by a VA-certified appraiser. This ensures that the price of the house reflects fair market value and that the house is in good shape and meets the VA’s minimum property requirements.
As of December 2021, the cost of an appraisal for a VA home loan NH was from $650-825, depending on the type of structure. Typically you pay this fee in advance.
What is the VA Loan Limit in New Hampshire?
If you have a full VA loan entitlement, you don’t have any loan limits. They were eliminated in 2020. However, if you have current VA loans or have defaulted on one in the past, you may face a limit.
In most parts of the country, the 2022 limit is $627,200. That amount applies to most New Hampshire VA mortgage loans, but in Rockingham and Strafford counties, it’s $770,500. Remember that these limits may not apply in your specific case.
Apply for a VA Home Loan in New Hampshire Today
For personalized service from professionals who know VA loans, rely on Griffin Funding. Buying a home and securing a mortgage can be a complex process, but we have the expertise to guide you through every step of the way.
We’re particularly proud to work on VA loans with the veterans and service members who have done so much for our country. Our commitment doesn’t stop with mortgages. We’re pleased to partner with Shelter to Soldier, a non-profit that rescues dogs from shelters and trains them to be service animals for veterans impacted by PTSD and traumatic brain injuries.
For more resources about Griffin Funding VA loans, visit our website. For the best VA loans New Hampshire has to offer, contact us today. We know how to go the extra distance for our veterans. Often we can help veterans who are impacted by the loan limits, and we can frequently offer cash-out refinance loans for 100 percent of the property value.