The VA Loan program was established as part of the Servicemen’s Readjustment Act in 1944 to help American veterans obtain home loans in situations where alternative financing may not be available. VA Loans are mortgages that are partially guaranteed by the U.S. Department of Veterans Affairs (VA). This guarantee makes it possible for Oklahoma veterans to receive very favorable loan terms and conditions when compared to other mortgages. 1st Capital Mortgage, LLC is proud to provide veterans with low rates and flexible financing options on Oklahoma City VA Loans.
Before applying for a VA loan, you must be eligible. Fortunately, most veterans, military, and spouses of deceased military members will be eligible to apply. Active-duty members are eligible to apply for a VA loan after roughly 6 months of service. Members of the National Guard and reservists must wait 6 years before becoming eligible however if they are called to active duty, they will become eligible after only 181 days. One of the first steps when applying for an Oklahoma City VA loan will be to acquire a Certificate of Eligibility (COE). If you do not have your COE, we can help you obtain this documentation during the preapproval process. Veterans will find there are many advantages of a VA loan when compared to other popular mortgage options.
Oklahoma City VA Loan benefits:
- No down payment (appraised value cannot exceed sale price)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- Closing costs are limited by VA regulation and may be paid by the seller
- VA funding fees can be financed with the loan (up to 3.3%)
- Up to $417,000 loan amount (certain counties may be higher)
Oklahoma City VA Loan Limits:
The VA does not require a minimum credit score for Oklahoma City VA loans but most lenders look for a credit score of 620 or higher. There may be a bit of flexibility in this area, but higher interest rates may be charged for lower scores. You should also be prepared to provide copies of W2 statements and previous pay stubs to verify income as well as documentation of assets such as checking accounts, savings accounts, and other financial investments.
Oklahoma City VA loans are available for the purchase of a new home as well as to refinance an existing mortgage. Depending on a borrower’s specific needs, Cash Out Refinance loans and Interest Rate Reduction Refinance loans are both available.
- Purchase Loans – Offers veterans competitive terms, rates, and down payment options on loans for the purchase of a new home.
- Cash-Out Refinance Loans – Veterans can take advantage of their home equity by utilizing a cash-out refinance loan to acquire extra cash for various expenses such as home improvements or management of other debts.
- Interest Rate Reduction Refinance Loan (IRRRL) – Existing VA loans can be refinanced at a lower rate through an IRRRL. You may also find this particular type of refinancing referred to as a VA Streamline Refinance Loan.
Whether you are a veteran looking to purchase your first home, or an existing VA loan holder interested in a cash-out refinance, our team of Oklahoma City VA loan experts at 1st Capital Mortgage, LLC is here to help you. For more information on VA loans or to begin the pre-qualification process, contact us today.