As a longtime community bank serving the residents of the Shenandoah Valley, F&M Mortgage is proud to be an approved VA home loan lender. Guaranteed by the U.S. Department of Veteran Affairs, the VA home loan program supports the home ownership aspirations of qualified service members and surviving spouses. There is no minimum down payment required on a VA home loan and credit guidelines are more flexible than with other mortgage options. Also, you don’t have to pay mortgage insurance on a VA loan, which keeps your monthly mortgage payments as low as possible.
Military veterans can face many challenges upon their re-entry to civilian life. Luckily, buying a home doesn’t have to be one of them. Our Loans for Local Heroes Home Loan Program is just one way we like to show our support to our Veterans. You can get up to $500 off at closing. When you’re ready to put down roots and become a homeowner, F&M Mortgage is here to help you make that happen.
Pros and Cons of VA Home Loans
As with other types of mortgages, you can get pre-approved for a VA loan in order to establish your home price range.
You can use a VA loan to refinance a current mortgage.
There is no minimum credit score required for VA loan approval, which makes it a great option for homebuyers with an imperfect credit history.
There is no limit on the amount you can borrow, other than the limit on any conforming mortgage.
VA mortgages tend to have lower interest rates.
The VA limits the amount veterans have to pay in closing costs, which makes them lower overall for a VA loan compared to other types of mortgages.
The appraisal process can be a downside, due to its length, but it also ensures the home you’re buying is in good condition.
You may have to pay a funding fee, which will increase the total amount of your loan.
If you don’t put any money down, you may end up with an “underwater” mortgage, meaning you owe more than the house’s market value, until you’ve paid off enough of the loan to have equity.
What types of properties can you purchase with a VA Home Loan?
VA loans can only be used for owner-occupied properties. However, you can purchase a multi-unit property for investment income, as long as you plan to live in one of the units. As mentioned above, the condition of the house must pass the VA’s rigorous inspection process. Therefore, it may not be possible to buy a true “fixer upper” with a VA loan. You can also use a VA loan to refinance a current mortgage, including a cash-out option.
F&M Mortgage: A Virginia Tradition Since 1908
F&M Mortgage, a division of F&M Bank, has been investing in Shenandoah Valley communities, and helping Virginia’s military veterans and their families become homeowners since the VA home loan program was introduced. Our Mortgage Advisors pride themselves on offering friendly, personalized service, with the kind of local expertise you only find in people who live and work in your community. Ready to apply for a VA loan? Use our online mortgage application or apply in person at your nearest branch. If you need help choosing the right mortgage loan, give us a call today!