If you're a current or former member of the military and are looking to buy a home, you should look into the benefits of VA home loans.  By working together with the loan officers at Mortgage Trees, you can determine if you are eligible for a VA loan.  Also, if you need to refinance an existing VA loan, our team can help you with that as well! We strive to help our clients get the best deals on their mortgages by educating them about all the programs that you might be eligible for and which options are the best for their situation.  We also have excellent information on our site about conventional and FHA loans.  However, this specific article will focus on the details of a VA mortgage loan.

What is a VA Loan?

This type of mortgage loan is guaranteed by the United States Department of Veteran's Affairs.  This program started in 1944 to help veterans and their spouses obtain a mortgage loan without a down payment.


How do I determine my eligibility for a VA loan?

First, you'll need to either apply for a certificate of eligibility from the VA or contact our team at Mortgage Trees to help with this step.  After we have determined whether you qualify, we can use your application to help you get pre-approved for your mortgage.

How much can I get with my VA loan?

These types of loans have similar lending limits to FHA loans.  For both of these loan types, the loan limit is determined by which county the home is in.  In Utah, the limit is $417,000 for all counties with the exception of Salt Lake, Summit, and Tooele counties.  For these counties, the limit is $594,550. VA has lower loan limits when compared to FHA and conventional Utah mortgage loans.  Loan eligibility, like for all other mortgage loans, is based on the borrower’s credit history, income, current debts, and assets.

One benefit of VA loans is that the borrowers do not have to have money for a down payment.  A VA loan can be used to finance the entire transaction.  In this situation, the seller would pay the closing cost, and the VA loan fee can be added to the balance at closing.  This fee is charged by the government, which then guarantees the loan.  Similar to the FHA loan, there is no upfront insurance premium.  However, in the case of the VA loan, there aren't any required monthly insurance payments.  Another thing to keep in mind is that the VA loan fee can be reduced slightly when the borrowers choose to make a down payment of at least 5% down.  Individuals with injuries or disabilities incurred during their military service do not have to pay the funding fee. 

For those who currently have a VA loan, our team can help you to lower your rate or go from an adjustable rate mortgage.  We accomplish this with an interest rate reduction refinance loan (IRRL).  In this situation, we don't need you to provide a new certificate of eligibility.  An IRRL will reduce your interest rate only (not cash goes back to the borrower).  Alternatively, if you want a cash-out refinance, it cannot be with a VA loan. 

At Mortgage Trees, a mortgage loan company in Utah can help you with FHA, VA or conventional mortgages.  If you've served or are serving our country in the military and are looking for a mortgage in Utah, our loan officers can help you find an option that works for you.  To learn more about whether you qualify for a mortgage loan, contact Mortgage Trees today!

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