How Does an Oregon VA Home Loan Work?
Applying for a mortgage is complex and requires that applicants meet precise requirements. On the other hand, a VA loan is guaranteed by the U.S. government, which allows private lenders to offer very favorable lending terms. Tens of millions of service members have bought homes in the past 70 years with help from the VA loan program.
Getting a VA loan is similar to a standard loan but allows borrowers to buy a home with zero money down because of the government’s guarantee of the loan. Lenders consider Oregon VA home loans safe and low-risk loans, which encourages lenders to offer generous VA loan rates in addition to no down payment.
An Oregon VA loan starts with prequalification, which is an estimate of how much mortgage an applicant can afford. The process continues with preapproval, which is where the lender looks at the borrower’s financial information. Preapproval is a necessary step when starting a serious home search. Real estate agents are more willing to work with applicants who are preapproved.
Once the borrower selects a home and makes an offer on it, the process continues with an appraisal and the underwriting process, which occurs when the lender evaluates all of the financial data supplied by the borrower. The last step is closing, where the borrower will sign several documents and receive a significant amount of paperwork.
What Is the VA Loan Limit in Oregon?
Borrowers who achieve full VA loan entitlement have no limit to the amount of money they can borrow. Currently, there are no VA loan limits in Oregon for those with full entitlement. You should have full entitlement for an Oregon VA loan if you’ve never had a VA loan before or already paid off a previous loan and sold the property to which that loan was attached.
Types of VA Home Loans in Oregon
You’ll have three options when you apply for an Oregon VA loan. Those options include:
- VA purchase loan
- VA streamline refinance loan (IRRRL)
- VA cash-out refinance loan
VA purchase loans are new loans where there is no existing loan. VA streamline refinance loans are loans where there is an existing VA loan, and the lender needs limited documentation from the borrower. The third type of loan, a VA cash-out refinance loan, is a loan where the borrower takes equity out of their home with a new mortgage that replaces their old mortgage.
Benefits of an Oregon VA Home Loan
A wealth of benefits exist for service members who apply for Oregon VA home loans. Not only can applicants enjoy zero down payment, but the loans also don’t require private mortgage insurance (PMI). Under non-VA loan rules, lenders require PMI insurance when borrowers put less than 20 percent down on their homes.
Additional benefits of an Oregon VA loan include increased flexibility in application requirements. Service members who qualify for VA disability or have service-related injuries aren’t charged funding fees. The VA loan program also allows some applicants to qualify with FICO scores of less than 620.
Applicants for VA home loans Oregon may also qualify to apply with less credit seasoning than with other loans. Credit seasoning is the amount of time that’s elapsed between an event that prevents the borrower from getting another mortgage. An example of a credit event is foreclosure.
What Are the Requirements for a VA Home Loan in Oregon?
Requirements for a VA-backed loan vary based on the type of service of the borrower. Veterans and service members on active duty will consult the U.S. Department of Veterans Affairs guidelines, where service requirements differ based on when a service member served in the military.
For example, a service member who served between August 2, 1990, and the present must serve 24 continuous months or have 90 days of active duty to qualify for an Oregon VA loan. Alternatively, service members must have 90 days of service if they were discharged due to a hardship or a reduction in force. Service members can qualify with fewer than 90 days of service if discharged for a service-connected disability.
Areas We Serve
Griffin Funding helps service members, veterans, and their families across the state apply for Oregon VA home loans. Our service areas include:
- Coos Bay
- Williamette Valley
- And more
Contact us today if you have questions about whether you can qualify for an Oregon VA loan or whether one of our traditional loans or Non-QM mortgages would be a better fit. We want to help you find the right loan for your needs.
How to Apply for a VA Home Loan in Oregon
The best way to apply for a VA loan is to apply now with Griffin Funding. Documents to gather include your driver’s license, a copy of your DD-214 or Reserve/Guard points statements, a statement of service if you’re an active-duty borrower, recent bank statements, and recent pay stubs or W-2s.