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Austin VA Home Loans

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VA Home Loan In Austin

The US Department of Veterans Affairs offers VA home loan options to assist you in purchasing, building, remodeling, and refinancing an existing mortgage. The department guarantees a percentage of the loan from a private lender. The guarantee lets the lender recoup losses if your VA-backed mortgage is foreclosed. Lenders are more inclined to grant you a loan with better terms since they face less risk. No down payment is required for about 90% of all VA-backed mortgages.

Lenders adhere to the VA requirements when providing home loans backed by the VA. Before they grant you a loan, they could put additional requirements on you. These requirements could include obtaining an updated house valuation (an expert’s estimation of your property’s value) or having an acceptable credit score.

What Is A VA Home Loan?

Veterans, active duty service members, and some military spouses may qualify for a VA loan, which requires no down payment. Private lenders, such as banks or mortgage firms, originate VA loans backed by the U.S. Department of Veterans Affairs (VA).

The United States government established the VA home loan in 1944 to assist returning military veterans in buying homes without a down payment or excellent credit. More than 25 million VA loans have been guaranteed by this illustrious program, helping veterans, active duty service members, and their families in either buying or refinancing a house.

VA Eligibility Requirements

You or your spouse must meet the minimum service requirements established by the Department of Veterans Affairs (VA), possess a current Certificate of Eligibility (COE), and meet the lender’s credit and income requirements to be eligible for a VA loan.

If you satisfy one or more of the following requirements, you may well be qualified for a VA loan:

  • During the war, you were on active duty for 90 days straight.
  • During peacetime, you were on duty for 181 days.
  • You have six years of experience in the Reserves or National Guard.
  • You were a service member’s spouse who passed away in the line of duty or suffered a handicap due to their service.

For lenders to confirm that a Veteran satisfies the minimal service criteria, they need a Certificate of Eligibility (COE). Your COE proves to the lender that you are eligible for VA loan benefits.

A COE is also required for surviving spouses to access their VA loan benefits and confirm their eligibility. Whether or whether you are getting Dependency and Indemnity Compensation determines whether you are eligible for a COE as a surviving spouse.

In addition to completing VA Form 26-1817 (Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses), spouses receiving Dependency and Indemnity Compensation benefits must also get a copy of the Veteran’s separation documents, such as a DD Form 214.

VA Credit Score And Income Requirements

The minimum credit score needed to qualify for a VA loan is not specified by the VA, but lenders usually require it. As a result, different lenders have different requirements for VA loans’ credit scores; generally, to get financing, most lenders need a mortgage credit score of 620.

The VA also requires qualified Veterans to keep a specific monthly income after paying all significant debts and expenses. The surplus, often referred to as “residual income,” should be sufficient to cover everyday household expenses like food, transportation, and medical care.

The VA increases the likelihood that borrowers will make enough money to cover all financial commitments by enforcing residual income standards and ensuring borrowers have a safety net in an emergency.

Lenders also take your debt-to-income ratio (DTI) into account. DTI and residual income give lenders a comprehensive view of your purchasing power and VA loan eligibility.

Apply For An Austin VA Home Loan

Veterans and active duty military personnel can begin the application process to determine if they qualify for a VA loan. During the initial step, loan preapproval, you’ll understand your chances of obtaining a VA loan. You are not obligated to use a specific lender or continue the home-buying process if you apply for a VA loan.

Capital Home Mortgage is a full-service Home Mortgage Company offering a full line of mortgage products, particularly an Austin VA home loan. Call us at (512) 237-4700 or Apply Online to get pre-approved for a VA loan.

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Call now to speak with a Loan Officer or request a no obligation custom rate quote.

Capital Home Mortgage is dedicated to offering Great Mortgage Rates.

Call Now to Speak with a Loan Officer or Request a no Obligation Rate Quote

Austin VA Purchase Loans

VA Home Loans are 100% financing with no loan limits provided the veteran has full entitlement available.  The goal of the VA is to guarantee the loan for lenders in order to make homeownership easier and desirable for all active duty service members, active duty reservists, honorably discharged veterans, as well as retired and disabled service members.

  • No Down Payment / No Loan Limits
  • No Monthly Mortgage Insurance Required
  • Simple Qualifying/ Flexible Underwriting
  • Seller Paid Closing Costs up to 4%
  • Higher Debt to Income Ratios Allowed
  • Alternate Credit Allowed
  • Manufactured Housing Permitted (Subject to Restrictions)

Austin VA Refinance Loans

The VA Home Mortgage Program offers two types of refinances.  The streamline refinance, known as an interest rate reduction loan requires minimal documentation and must provide the veteran savings in payment or a reduction in term.  The regular refinance is for cash-out and for conversions when a veteran is changing their mortgage over to a VA loan.

  • Streamline Option
    • VA IRRRL Rate and Term
    • No Appraisal / No Income Verification Required
  • Full Documentation
    • Cash-Out Option (Not Available in Texas)
    • Loan Conversions

Austin VA Mortgage Information

Austin VA Loan Requirements
  • Active Duty – 90 days Wartime / 180 Days Peacetime
  • Honorable Discharged – 22 Months of Completed Service
  • National Guard / Reserves – 6 Years Completed Service
  • Spouse of a Service Member who Died in the line of Duty or as a result of Sevice realted Disability
Austin VA Funding Fees
  • VA Purchases – First Use
    • 0% to 5% Down Funding Fee 2.3%
    • 5% or Higher Down Payment Funding Fee 1.65%
    • Subsequent Uses Funding Fee 3.6%
  • VA Cash-Out Refinances or  VA Refinance Conversions
    • First Use 2.3%
    • Subsequent Uses 3.6%
    • VA IRRL Refinance 0.5%
  • No Funding Fee with 10% or Higher Disability
Not Sure? Take a Look at Other Austin Mortgage Programs

Austin Texas Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Kelly Cameron

Loan Officer
NMLS 178093

Kelvin Thompson

Loan Officer
NMLS 2050042

Jonathon Cummins

Loan Officer
NMLS 270657

Austin Mortgage Company Reviews

What is a Texas VA Home Loan?
VA Home Loans are for active duty service members, active reservists, honorably discharged service members, as well as retired and disabled service members.VA stands for “Veterans Administration”, which oversees all Veteran benefits including home loans. Established in 1944 and part of the GI Bill or Rights, VA set out to help men and women who served their country catch up to their civilian counterparts by establishing credit and building financial wealth. It’s important to understand that VA does not lend money, VA instead provides lenders a guarantee that covers the lender from loss in the event of foreclosures.  In simple terms VA insures a portion of the loan that the buyer  would have normally had to put down to qualify allowing for a zero down payment. VA loans require an upfront mortgage insurance fee, which can be financed into the loan, from each borrower.  This fee supports the guarantee fund and makes the 100% VA home loan possible.  Veterans with a minimum of 10% disability are exempt from the funding fee.