What you Need to Know About Getting a VA Loan in IL
If you are a veteran or current member of the United States armed forces, you may be eligible to get a VA Loan in IL. These mortgages are backed by the U.S. Department of Veterans Affairs and have some of the best features in the industry, including 0 percent down payments. If you have served in the military and are planning to buy a home, learn how to get a VA loan in IL so you can benefit from this great loan program.
Notable features of VA loans in IL
- You do not need to have a down payment to buy a home with a VA loan. The 0 percent down payment makes buying a home accessible for millions of veterans who do not have money saved for a down payment.
- You do not need to pay mortgage insurance on a VA loan, even if your down payment is less than 20 percent.
- You may be eligible for a VA loan in Illinois even if your credit score is below 700 and if you have a recent foreclosure or bankruptcy.
- Interest rates are highly competitive and make VA loans the best option for nearly all eligible borrowers.
Who can get a VA loan?
The main criteria for getting a VA loan is that you have to be a veteran or current member of the United States military. You need to meet at least one of these eligibility standards to apply:
- Have completed at least 90 days of active duty service during wartime
- Have completed at least 181 days of active duty service during peacetime
- Served in the Reserves or National Guard for at least 6 years
- In some cases, a surviving spouse of a veteran who died in service or from a disability related to service may be eligible
In addition, our experienced team of lenders will look over your credit history and financial position to help us make an approval decision on your VA loan. In most cases, you need acredit score of at least 620. Your debt-to-income ratio, which is your total monthly debt payments divided by your total monthly income, should be less than 41 percent to qualify. If your debt-to-income ratio is higher than 41 percent, you will only qualify if you meet additional financial guidelines.
Step by step: How to get a VA loan in IL
- Contact United Home Loans to get pre-qualified for a VA loan. This helps you understand how much you can afford to spend on a home and guides your home search.
- Get a Certificate of Eligibility by obtaining a statement of service, DD Form 214, or other proof of eligibility. Our friendly mortgage bankers have years of experience processing VA loans and can help you understand what proof of eligibility you need. In many cases, we can obtain your Certificate of Eligibility online.
- Work with a real estate agent to find a home you would like to buy and sign a purchase contract. Make sure the contract includes a “VA Option Clause”, which gives you the option of walking away from the purchase without penalty if the VA appraisal result is less than the purchase price.
- Determine whether you will pay the upfront funding fee in cash at closing or by rolling it into your loan amount. This fee ranges from 1.25 percent to 3.3 percent of the purchase price, depending on the down payment amount, military affiliation, and whether this is your first VA loan.
- Apply for your VA loan by filling out a formal application. Our friendly staff will walk you through each stage of this process and help you understand exactly what paperwork you need to submit for your loan application and approval.
- Complete and sign the paperwork to finalize your VA loan and purchase your home.
For more information on VA Loans, call or contact us below.