VA Home Loans In Tacoma

What is a VA Home Loan?

A VA home loan is a benefit offered by the Department of Veterans Affairs that allows Veterans, Servicemembers, and qualifying surviving spouses to purchase a home with no money down. This benefit assists these persons in purchasing, constructing, repairing, retaining, or adapting a home for their own personal occupancy.

Private lenders, such as banks and mortgage companies, provide VA home loans. The VA backs or guarantees a portion of the loan, allowing the lender to offer the borrower better terms. No down payment (though some lenders may require this depending on the borrower’s circumstances), competitively low-interest rates, reduced closing expenses, and no requirement for Private Mortgage Insurance (PMI) are some terms that can be offered.

The VA home loan benefit is a lifetime benefit, meaning you can utilize it as often as you choose. Purchase Loans are one form of loan accessible under this benefit, and they can help you buy a home at a competitive interest rate, typically without requiring a down payment or private mortgage insurance.

What are the Advantages of a VA Loan?

VA home loans provide various benefits to eligible veterans, active-duty people, and certain surviving spouses looking to buy, build, adapt, or refinance a house in Tacoma, Washington. Among them are the following:

• No Down Payment 

One of the notable benefits of a VA home loan is that there is no down payment required. This benefit is significant for home purchasers who may need help to save enough money for a conventional loan’s regular down payment requirement. At the same time, conventional loans may require a down payment of up to 20%, but VA home loans do not, allowing prospective homeowners to acquire a home without saving for years.

• Lower Interest Rates

VA loans typically feature lower interest rates than other types of loans. This is because the VA guarantees a portion of each VA loan, giving lenders additional assurance and enabling them to charge lower interest rates.

• No Private Mortgage Insurance

VA loans do not require mortgage insurance, unlike conventional loans, which require PMI when a loan exceeds 80% of the property’s value. This means that even if a buyer puts down a modest amount or nothing, they will not be required to pay PMI. This can reduce the monthly payment significantly.

• Seller Concessions

The seller is permitted to contribute up to 4% of the home’s value toward the buyer’s closing costs, which could result in substantial savings for the buyer.

• Additional State Benefits

In addition to federal VA loan benefits, the state of Washington provides additional benefits to military members, veterans, and their families. These include exemptions from property taxes, state employment preferences, and education and tuition support, while eligibility for some benefits may be contingent on residency, military component, and veteran disability status.

What are the Eligibility Requirements for a VA Loan?

The eligibility requirements for a VA home loan focus primarily on your service record, duty status, and the lender’s credit and income loan requirements.

• Service Requirements

The fundamental requirement to qualify for a VA loan is military service. Active-duty service members must have served for at least 90 days. The minimum active-duty service requirement for veterans varies depending on when you served.

• Service in the National Guard or Reserves

You served 90 days on active duty or six years in the Selected Reserve or National Guard.

• Certificate of Eligibility (COE)

A Certificate of Eligibility (COE) is a document issued by the U.S. Department of Veterans Affairs (the VA) that tells your VA loan lender that you meet the standards to get a VA loan. In addition, it means your lender has everything they need to know about your rights and fees. Your entitlement is the total amount of your loan that the VA will back.

• Discharge Status

You may be eligible for a Certificate of Eligibility (COE) if you didn’t receive a dishonorable discharge.

• Primary Residence

The loan is intended for a primary residence, and you must move into your new home within a reasonable time limit, usually within 60 days of closing.

Apply for a VA Home Loan in Tacoma

Capital Home Mortgage is an outstanding option for Tacoma, VA home loan applicants. Capital Home Mortgage is well-known for offering various home loan options, which may include VA loans, giving consumers flexibility and tailored solutions. By selecting Capital Home Mortgage, homebuyers in Tacoma can take advantage of these benefits and receive guidance throughout the home-buying process, making homeownership more accessible and affordable.

Call (803) 600-0088 to speak with our Tacoma VA Home Loan Specialists.