The Servicemen’s Readjustment Act was passed to provide various benefits to veterans, active military, or their surviving spouses. The VA loan program was one of these benefits designed to help American veterans and military purchase homes. The U.S. Department of Veterans Affairs (VA) guarantees home loans, making it possible for Alabama veterans to receive very favorable rates and terms compared to other mortgages. At Mortgage Team 1, Inc, we are proud to offer VA loans to veterans and active military throughout Mobile and all of Alabama.
VA loan eligibility varies depending on service status however, most veterans, military, and spouses of deceased military members will find they are eligible. Veterans are eligible immediately if service requirements have been met. Active-duty members become eligible after roughly 6 months of service. Members of the National Guard and reservists will need to wait 6 years to become eligible. If either are called to active duty, eligibility will be reached after only 181 days. A Certificate of Eligibility (COE) is required for all applicants.
Mobile VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- Closing costs are limited by VA regulation
- Up to $417,000 loan amount (certain counties may be higher)
Mobile VA Loan Limits
Lenders typically require a score of 620 or higher for VA loans although there is no minimum requirement set in place by the VA. This means that we can be flexible with each of our clients. Lower credit scores can often be approved with larger down payments or higher interest rates. During the application process, you will need to verify your income so be prepared to provide W2 statements and pay stubs during the application process. You will also need to provide documentation of assets such as checking accounts, savings accounts, and other financial investments.
Alabama residents can use VA loans for the purchase of a new home as well as refinancing an existing VA loan. Cash-Out Refinance Loans allow homeowners to obtain extra cash for expenses such as home improvements, remodeling, or high-interest debt consolidation. Interest Rate Reduction Refinance Loan (IRRRL), also referred to as VA Streamline Refinance Loans, are also available to take advantage of lower interest rates.
At Mortgage Team 1, Inc, we are proud to help the veterans and military members throughout Mobile achieve their homeownership goals. One of the founding members of Mortgage Team 1, Inc is a Navy veteran, and one of our loan originators is a U.S. Coast Guard Veteran so we understand how valuable the VA loan is to Mobile residents. For more information on Mobile VA loans or to begin the prequalification process, contact us today. We are a local mobile office and