VA Loans

VA Loans became available as part of the Servicemen’s Readjustment Act, passed by Congress in 1944 to provide various benefits to veterans and their surviving spouses. The VA loan was created to help American veterans purchase a home in situations where alternative financing was difficult to obtain. By guaranteeing these loans and offering 100% financing, the U.S. Department of Veterans Affairs (VA) makes homeownership easier for many veterans. Bank of England Mortgage is proud to offer VA financing to the many veterans living throughout Branford and all of Connecticut.

VA loan eligibility will vary depending on the service status of the individual applicant. Most veterans, military, and spouses of deceased military members will be eligible to apply. Veterans who meet minimum active duty service requirements will be eligible without any delay. Active-duty members will need to fulfill roughly 6 months of service before becoming eligible whereas members of the National Guard and reservists meet eligibility after 6 years. However, if they are called to active duty, they will become eligible after only 181 days. A Certificate of Eligibility (COE) will be required by all applicants so be sure to acquire this as soon as you can. If you are unsure how to go about doing this, we can assist you during the application process.

Veterans will find there are a number of benefits to the VA loan when compared with alternative mortgage options.

Branford 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
  • VA regulation limits closing costs
  • Up to $424,100 loan amount (certain counties may be higher)

Branford VA Loan Limits

There is no minimum credit score required by the VA when applying for a loan but lenders typically require borrowers to have credit scores of 620 or higher. With no minimum credit score requirement, lenders can be flexible with each borrower depending on their unique financial situation. For example, a lower credit score could be approved but you may be charged a higher rate of interest. W-2 statements, recent paystubs, and documentation of checking accounts, savings accounts, and other financial investments will be needed when you apply so be prepared to provide this information.

Veterans who currently have a VA loan can refinance that existing loan through the VA program as well. Cash out refinances are available for home improvements, remodeling, high-interest debt consolidation, or other expenses. Interest Rate Reduction Refinance Loan (IRRRL) are also available for veterans who simply wish to improve their interest rate. The IRRRL is also referred to as the streamline refinance loan.

At Bank of England Mortgage, our goal is to help Branford veterans purchase a home or refinance their existing home loan at a great rate through the VA loan program. For more information on Branford VA loans or to begin the prequalification process, contact us today.