- VA loans are a special type of home financing reserved for men and women who have served the United States directly or indirectly through the military and related organizations. VA Loans are a non-conventional loan option and are insured by the U.S. Department of Veterans Affairs (the VA). Other than meeting service requirements, VA loans have minimal approval requirements and have other great benefits including a 0% down payment requirement. Lincoln Home Loans works closely with veterans and servicemembers near Fort Campbell and throughout Nashville, Clarksville, and Memphis, Tennessee.
The Basics of VA Loans
VA loans are one of several types of non-conventional mortgages. Non-conventional loans are secured by various divisions of the federal government (VA, FHA, USDA), but funded through other entities. In the case of default, the government promises to repay the lender for most of their losses. Because of this, lenders are more flexible regarding their approval requirements for borrowers.
The VA loan program – officially called the VA Home Loan Guaranty Program – was created in 1944 to help veterans, servicemembers, and certain others who have served gain access to affordable home financing.
Qualifying members of the military and other organizations can use their VA loan benefits to purchase, rehabilitate, or purchase approved homes, condominiums, and manufactured homes. In Davidson County, the loan limits for VA loans are:
- $890,100 for a one-unit property
- $1,139,500 for a two-unit property
- $1,377,400 for a three-unit property
- $1,711,750 for a four-unit property
The Benefits of VA Loans
Today, the program serves the same purpose. Benefits of the VA loan include:
- Easy qualifying, with credit scores as low as 620 accepted
- No down payment requirement
- No mortgage insurance requirement
- Limited Closing Costs
- The Benefit is Reusable
Eligibility for VA Loans
VA loans may only be offered through VA-approved lenders. To be considered eligible for a VA loan, you’ll first need to obtain a certificate of eligibility (COE). COEs simply prove that you have served to your lender and that you’re eligible to receive funding. You’ll need to provide different documentation depending on your service, with your COE application. Our mortgage professionals can help you determine what forms you’ll need.
To determine if you meet the service requirements, we’ll have to look more closely at your record of service. However, the basic list of those who are eligible for these loans include:
- Veterans and servicemembers who have served at least 181 days continuously in wartime and received other than a dishonorable discharge, or
- Veterans and servicemembers who have served at least 90 days continuously in wartime and received other than a dishonorable discharge, or
- National Guard members or Reservists who have served more than 6 years of service, or
- Surviving spouses of veterans killed during service or from a service-related injury
- Members of certain organizations like the Coast Guard Academy and National Oceanic & Atmospheric Administration
Start the Journey to Homeownership
If a VA loan sounds like it is right for you, contact Lincoln Home Loans today. We offer VA loans and all other types of mortgages to veterans, service members, and their families near Fort Campbell and throughout Nashville, Clarksville, Memphis, and nearby Tennessee areas.