VA Loans in Arizona

VA Home Loan: Facts, Benefits, and Requirements

Department Of Veterans AffairsA VA Loan, also known as a Veterans Administration Loan, is simply a guaranteed home loan. It is actually a guarantee to the Lender. The VA will guarantee that the Lender will be paid even if the buyer defaults on the loan. Since the VA does not actually lend the money it cannot guarantee that any given buyer will qualify for a loan. The VA home loan program is the preferred loan program for members of the U.S. Armed Forces including all active, non-active, National Guard, Reserve and/or retired armed forces members. As with any other loan, a VA loan comes with benefits and requirements, which are listed below.

Living in Arizona or the Phoenix valley and interested in applying for a VA loan? Check out these great benefits.

First lets take a look at some of the great BENEFITS available through an Arizona VA loan:

  • VA eligible borrowers can obtain 30 Year Fixed or 15 Year Fixed loans.
  • The Seller can pay up to 4% of the veterans closing costs. Seller can even pay down Buyer debt to help lower the buyer’s debt-to-income ratio, enhancing the buyer’s qualifications for obtaining a loan.
  • You don’t need perfect credit, and interest rates are very similar to FHA rates.
  • You can use this loan to purchase a new home or refinance an existing mortgage.
  • There is a limitation on Buyer closing costs and the Seller is required to pay certain closing costs.
  • Best of all, NO down payment and NO PMI, or Private Mortgage Insurance are required!

There are some REQUIREMENTS of service that are covered below:

  • Veterans who served during wartime must have been active duty for a minimum of 90 days
  • Veterans who served during peacetime must have been active duty for a minimum of 181 days
  • Veterans who served in the National Guard or Reserves must have served for a minimum of 6 years to be eligible
  • You cannot have been dishonorably discharged.
  • A surviving spouse of a deceased veteran who died on active duty or as a result of a service connected disability IS eligible for this home loan benefit.
  • However, the children of a living or deceased veteran ARE NOT eligible for the home loan benefit.
  • A Certificate of Eligibility or COE will be required to determine VA entitlement. You can get one online by going to this VA webpage
  • A statement of service will be required for active military personnel and discharged veterans will need their DD214.
  • A standard form 180 mailed to the appropriate custodian of military service records is used to obtain proof of military service.

Here is an itemization of fees and closing costs on VA borrowers cannot pay:

  • Real estate agent or brokerage fees or commissions related to the VA loan.
  • FHA or HUD inspection fees for builders.
  • Second appraisals used for the intent of reconsidering a value.
  • Lender underwriting fees.
  • Escrow fees from the title company.
  • Any fees related to re-inspections of the property to determine VA conformity.

What are the VA loan limits for the counties in Arizona?

  • VA Loans with 0% down payment follow the Single Family Residence loan limits that are set with Conventional loans. As of January 1st 2017, the Single Family Residence limit is $424,100
  • VA loans can exceed this loan limit of $424,100 but will require a down payment based on the veteran’s entitlement as indicated on the Certificate of Eligibility
  • All Arizona counties have the same VA loan limits

Applying for an Arizona VA Loan

Remember that applying for an Arizona VA Loan does not necessarily mean you will qualify. Each lender has different qualifications including minimum FICO/credit scores, debt-to-income ratios, and maximum loan amounts. However, your lender can work on your behalf to help you attain a certificate of eligibility on your behalf. Contact a mortgage professional at The Mortgage Brothers Team and we will walk you through the VA loan process, making it simple and easy for you.

Funding Fee on Purchase for First Time Use

Down Payment Amount Veteran/Active Duty Reservist/National Guard
Less than 5% 2.15% 2.40%
Between 5% and 9.99% 1.50% 1.75%
Greater than 10% 1.25% 1.50%

Funding Fee on Purchase if You Have Used Your VA Eligibility Previously

Down Payment Amount Veteran/Active Duty Reservist/National Guard
Less than 5% 3.30% 3.30%
Between 5% and 9.99% 1.50% 1.75%
Greater than 10% 1.25% 1.50%

Funding Fee If You Are Doing a VA cash-out Refinance

  • The Funding fee is not reduced on cash-out VA loans
Type of Veteran First Time Use Subsequent Use
Regular Military 2.15% 3.30%
Reserves/National Guard 2.40% 3.30%
Funding Fee If You Are Doing a VA Streamline Refinance
  • Referred to as a IRRRL VA refinance
  • No appraisal required
  • No income verification
Type of VA Loan refinance Veteran/Active Duty Reservist/National Guard
Regardless of how many VA loans you have had 0.50% 0.50%
Assumptions 1.50% 1.75%
Service Connected Veterans 0.00% N/A