What Is a VA Home Loan?
A VA home loan is a type of mortgage loan that is available to veterans, active duty service members, and widowed spouses of those who are killed in action. In 1944, it started out as a part of the GI Bill of Rights, with the goal of providing veterans and their families with affordable housing and assistance to purchase a home.
This loan is backed by the Department of Veterans Affairs, meaning that mortgage companies are taking less risk when lending you money. With a VA home loan, there are many advantages. You will not need to put any money down when purchasing a home and you will have access to lower VA rates.
Types of VA Home Loans
There are three types of VA home loans available, including:
- VA Purchase Loan: A VA Purchase Loan is the most basic type of VA loan. It is what you would apply for when you wish to purchase a new home. If you are having trouble finding other mortgage options and are a qualifying veteran or family member, this can be a very good choice. It will allow you to buy a home with zero down payment and much lower interest rates.
- VA Cash-Out Refinance Loan: A VA Cash-Out Refinance Loan allows a veteran or qualifying family member to refinance their loan, whether conventional or a VA home loan, for a lower rate. It also extracts cash from the home’s equity. This is not a supplement to your original loan but an entirely new mortgage loan. You are able to refinance up to 90 percent of your home’s value for mortgage debt.
- VA Streamline Refinance Loan (IRRRL): This type of VA loan is for homeowners who already have a VA home loan but want to refinance for a lower monthly payment. Changing to this loan is a very quick and easy process as you have already proven your eligibility. There is likely no need for a new appraisal, inspection, or income verification.
Learning about all three types of VA home loans at once can be confusing, but Griffin Funding is here to help. Contact a Griffin Funding loan officer to figure out which loan is best for you and start the application process.
VA Home Loan Benefits
There are numerous benefits to obtaining a VA purchase loan for a home such as the following:
- Not needing a down payment
- Lower interest rates than traditional financing
- All VA home loans are backed by the Department of Veterans Affairs
- Private mortgage insurance is not mandatory
- Loan requirements are flexible
- Only limited closing costs are required
- If you pay off your home loan early there are no financial penalties
- Not only can you purchase a house, but you are also able to choose a condominium, a duplex, or any other kind of property
- A VA loan is assumable and may be transferred to a buyer who is deemed VA-eligible
All in all, VA loans are more affordable than other mortgages and allow a family to conserve money for other purposes.
Who Is Eligible for a VA Home Loan in Oklahoma?
Veterans, active duty service members, as well as widows of veterans qualify for Oklahoma VA mortgage loans. You must have a Certificate of Eligibility, or CoE, that validates your minimum active duty requirements. You can obtain a CoE by mail or through your lender. We are happy to help you navigate this process at Griffin Funding.
There are other requirements that must be met as well. You must have a good credit history and proof of a steady and reliable income. Any FICO score above 580 is considered for a VA home loan in Oklahoma.
How Do Oklahoma VA Home Loans Work?
VA mortgage loans in Oklahoma are made by private lenders with the backing of the Department of Veterans Affairs. What the VA does is guarantee a portion of a person’s home loan. This happens in lieu of a large down payment. If the borrower defaults on his or her loan, the VA protects the lender from losing that money.
There are two parts to the VA entitlement, the basic entitlement and the bonus entitlement. There may well be a maximum amount that the borrower can receive, but that amount varies with the individual. In an instance where the borrower still has his or her total loan entitlement, loan limits will not apply.
For a VA home loan in Oklahoma, you must also get an appraisal for your desired home. Depending on the type of property you are seeking approval for, the fee will typically be between $675 and $900. The fee takes roughly ten days to process.
An appraisal is a mandatory step in order to move forward with VA home loans. This determines the fair market value of the home and provides proof that your prospective home meets the minimum property requirements of the VA.
What Is the VA Loan Limit in Oklahoma?
In all counties of Oklahoma as of January 1, 2022, the VA home loan limit is roughly $647,000. This is true even if the veteran borrower still has his or her full VA loan entitlement. If you have any other questions regarding loan limits in your county, contact a Griffin Funding loan officer today.
Apply for a VA Home Loan in Oklahoma Today
If you are looking to apply for a VA home loan in Oklahoma, a Griffin Funding loan officer would be happy to guide you through the process. At Griffin Funding, we guarantee that the entire VA home loan process is completed within 30 days or less, so you can close on your dream home as soon as possible. We hope to streamline the Oklahoma VA mortgage loan process for veterans and their families, from obtaining a Certificate of Eligibility to receiving the funding for your loan. Reach out to us and start your application for a VA loan in Oklahoma today!