What Is a VA Home Loan?
VA home loans first started as a part of the GI Bill of Rights in 1944. They provide veterans and their families with housing assistance. Backed by the Department of Veterans Affairs, they allow you to purchase or refinance your house without having to put money down. Furthermore, you can access lower VA rates, which could help you save thousands of dollars on your mortgage.
Types of VA Home Loans
If you are interested in VA mortgage loans in Pennsylvania, there are several different types. Some of the most popular options include:
- VA purchase loan: This is a home loan that you can take out to purchase a house. You don’t have to put any money down, and you can qualify for a lower interest rate. This type of loan is available to current service members and veterans. If you want to purchase your dream house, this could be the best option available.
- VA Streamline Refinance Loan (IRRRL): This is another one of the most popular types of Pennsylvania VA home loans. To qualify for a VA IRRRL, your original loan must be a VA loan. Using a VA IRRRL, you might be able to pay off your mortgage more quickly, and you could save thousands of dollars by reducing your interest rate and payment.
- VA Cash-Out Refinance Loan: If you want to tap into the equity you have in your house, VA loans PA can help you do that. A cash-out refinance is one of the most popular VA home loans in Pennsylvania. That way, you can use the equity in your home to cover other expenses.
Navigating these different types of VA home loans in Pennsylvania can be daunting and confusing, but Griffin Funding is here to help. With assistance from our loan officers, we guarantee to complete the entire VA mortgage loan process within 30 days or less.
VA Home Loan Benefits
If you decide to go with a VA loan in Pennsylvania, there are several significant benefits you will enjoy. They include:
- You do not need to worry about putting any money down to qualify for a VA home loan. This means you don’t need to wait as long to save up money to purchase your house.
- Because the loan is backed by the Department of Veterans Affairs, you should qualify for a lower interest rate.
- You don’t need to worry about purchasing private mortgage insurance because the loan has been insured by the VA.
- You can also save money on closing costs, as the closing costs associated with a VA loan are significantly lower.
- If you want to tap into the equity in your home, you might be able to cash out up to 100 percent of the home’s value. In some cases, you might even be able to cash out all of it.
Other benefits to keep in mind include the fact that VA home loans are assumable and can be transferred to another VA-eligible home buyer. Non-spouse family members can even be added to your loan for a VA joint loan. There is also no penalty for repaying your loan off earlier. In general, the terms for a Pennsylvania VA home loan are much more flexible and generous.
Who Is Eligible for a VA Home Loan in Pennsylvania?
Generally, you must be either a veteran, active duty service member, or a widowed spouse of someone who was killed in action to be eligible for a VA home loan in Pennsylvania. Keep in mind that for different branches of the military, there might be different requirements for the number of days you must serve in order to be eligible for a VA loan. You will need to obtain a Certificate of Eligibility (CoE) and also have a credit score higher than 500 and proof of income in order to qualify for a Pennsylvania VA mortgage loan. If you are confused about any step in this process or want help figuring out your eligibility, reach out to a Griffin Funding loan officer. Lenders are able to request a CoE through an online system, making this process much easier.
How Do Pennsylvania VA Home Loans Work?
With a VA home loan, you will still get a home loan from a private lender. Common examples include banks, credit unions, and mortgage companies. The VA will back a portion of your loan, which allows you to take out a loan without putting any money down. It also qualifies you for a lower interest rate.
This guarantee is known as an entitlement. The first portion of this entitlement is called the basic entitlement, allowing the VA to insure up to 25 percent of the first $144,000 of your loan. Then, there is a bonus entitlement, which means that the VA will insure up to 25 percent of the loan amount from $144,000 up to the conforming loan limit. This type of protection allows you to qualify for better mortgage terms.
What is the VA Loan Limit in Pennsylvania?
VA home loan borrowers are no longer restricted by loan limits in Pennsylvania if they have their full VA loan entitlement. A VA loan entitlement is essentially the amount the Department of Veterans Affairs is willing to guarantee a lender if you default on your loan.
However, those without the full VA loan entitlement are still subject to the loan limits in each Pennsylvania county. If you live in Pike county in Pennsylvania, the VA loan limit is $970,800. If you live in any other county in Pennsylvania, the limit is $647,200.
Apply for a VA Home Loan in Pennsylvania Today
If you want to take out a VA home loan in Pennsylvania, look no further than Griffin Funding. At Griffin Funding, we are proud to work with active-duty military members, veterans, and their families to fund home purchases. We have also partnered with Shelter to Soldier, helping to train shelter dogs as psychiatric service dogs for combat veterans suffering from PTSD. Contact us to learn more about VA home loans in Pennsylvania and start your application process today. We look forward to assisting you in your homeownership journey.