Arizona VA loans provide Veterans and surviving spouses great mortgage options to purchase, refinance or renovate their home. In fact, VA home loans offer 0% down payment, have no monthly mortgage insurance and provide competitive interest rates.
Arizona VA Home Loan
VA home loans give veterans excellent mortgage options and benefits. Eligible surviving spouses also have access to VA loan products. As a veteran, you may have questions regarding your VA mortgage options. The Arizona VA mortgage section of our site will help you learn more about the following:
- Your VA home loan eligibility
- Benefits of a VA home loan
- VA loan pre-qualification
- VA home loan options
- History of the VA home loan program
Understanding your VA mortgage options is important. While VA mortgages often best suit veterans, knowing if a VA loan is right for you is key. In fact, learning about VA home loan features is a great starting point.
VA Mortgage Benefits
Veterans benefit greatly from utilizing their VA home loan options. From no down payment to great interest rates, VA is an excellent mortgage option. For example, VA provides veterans with:
- $0 Down Payment
- Flexible Credit Guidelines
- Competitive Interest Rate
- Use VA Loan Multiple Times
- Veterans Can Have Multiple VA Loans At a Time
- No Pre–Payment Penalty
- Loan terms include 5yr or 7yr ARM, 15 and 30 year fixed*
Arizona VA Home Loan FAQ’s
While VA Max Loan Limit is less critical now due to 2020’s down payment changes, you can find your local VA Max Loan limit here.
In most cases no down payment is required.
No, Monthly mortgage insurance is not required. However, some veterans pay a “VA Funding Fee“
Yes, VA allows seller and gift funds to pay for closing costs. Similarly, VA permits sellers to pay for eligible consumer debts of the veterans.
VA loans finance primary residence single family, town-home, condo or manufactured homes
VA Home Loan Pre-qualification
The VA pre-qual process resembles the process for other mortgage types. In fact a VA pre-qual nearly matches the Conventional, FHA and JUMBO process. However, VA home loan pre-qual is slightly different. Veterans reap several benefits from completing these 4 easy steps:
- Complete Home Loan Application
First, a home loan application is completed on the phone or online and typically takes about 10-15 minutes.
- Provide Lender with Supporting Documentation
Next, supporting documents veterans submit documents such as pay-stubs and bank statements. These help us verify that the information on your application also meets underwriting guidelines.
- Determine VA Eligibility
This step marks the difference between VA and non-VA pre-qualification. We order a VA Certificate of Eligibility confirming your VA eligibility (or “entitlement”) is sufficient.
- Lender Reviews all Documents
Finally, after reviewing your documents, information and VA entitlement your pre-qualification is complete.
Types of VA Home Loans
VA offers veterans several home loan options. The different loan types include purchase, cash out refinance, streamline refinances, non cash out refinance and VA Renovation loans.
A common use of a VA mortgage is to finance the purchase of a new home. Veterans utilize VA home loans for the purchase of both a resale/existing homes as well as a newly constructed/new build home.
Refinance (non Cash Out)
Another benefit of VA home financing is the non cash out refinance option. VA offers 2 options to refinance without taking cash out.
- Streamline Refinance (called an Interest Rate Reduction Refinance Loan or “IRRRL”)
- Full qualification Rate and Term Refinance
Streamline refinances lower the interest rate of an existing VA mortgage while keeping the term of the loan the same. For example, a 30 year loan refinanced into a new 30 year loan at a lower rate. VA streamline refinances require no appraisal. Additionally, VA streamlines require no income / asset documentation from the veteran.
Full qualification VA Rate and Term refinances allow veterans in the following situations to refinance without pulling cash out of their home:
- veterans not eligible for a VA Streamline
- refinance and change the term of their existing loan.
- refinance a non VA mortgage into a VA mortgage.
Cash Out Refinance
Veterans also have the option of doing a cash out refinance using their VA home loan. Cash out refinances allow veterans to consolidate debt and/or pull equity out of a home for other uses such as other purchases, investments, home improvements and more.
VA Renovation loans (also see VA Escrow Hold-backs) help veterans rehab either their current home or a home they are purchasing. Using future value in determining the VA Renovation loan makes this loan product unique. In fact, the value comes from the appraiser stating the homes worth as it will be once the renovations are complete.
History of VA Home Loans
“VA” stands for Veterans Affairs. Initially, the VA began insuring home loans for veterans in 1944. Ultimately, the VA’s focus was to combat the aftermath associated with war. Interestingly, the VA does not fund, approve or close VA Home Loans. However, the VA creates rules that Arizona VA mortgage lenders follow.
In addition, VA insures each VA home loan. In fact, this is what allows lenders to provide veterans this amazing home financing option. To date, the VA has insured over 18 million VA home loans.
*5/1 ARM – Interest rate is fixed for the first 5 years. Beyond the 5 year mark, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will change relative to the direction of the rate change.
*7/1 ARM – Has a fixed interest rate for the first 7 years. After, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will change relative to the direction of the rate change.
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