FHA and VA Loans

FHA Home Loan

FHA mortgages are a popular mortgage product for home purchases. FHA loans are designed to make homeownership more affordable. You can purchase a home with a lower down payment, less documentation and a lower credit scores than a conventional loan.

FHA loans enable more people to achieve homeownership by allowing borrowers who have less than perfect credit, no credit history, or who may have experienced some financial missteps, like a foreclosure or bankruptcy, to qualify.

FHA Mortgage Benefits Include:

• FHA Allows Low Down Payments: 3.5% down payment is a great benefit for first-time homebuyers, those who have little money to put down.
• FHA Allows 100% Gift Funds: In addition to a low down payment, the down payment funds can come from a gift.
• Wide Variety of FHA Loan Products: 30, 20 and 15 year fixed, Adjustable Rate Mortgage (ARMS) and 203k loan (Home Renovation Loans)
• FHA Insures All Types of Properties: FHA loans are available for single-family detached homes, 2-4 unit homes, condos, and manufactured homes

VA Home Loan

VA Home Purchase Benefits

VA loans are designed to help active duty military and veterans qualify for homeownership and are one of the most popular choices among eligible first-time homebuyers and eligible military personnel because of the exceptional terms they offer military borrowers. A VA loan is a mortgage guaranteed by the U.S. Department of Veteran Affairs. They offer lower interest rates and better terms than conventional mortgages and are offered exclusively to service members and certain military spouses.

Basic Allowance for Housing

The Basic Allowance for Housing (BAH) is a military entitlement given to active duty personnel to provide housing for themselves and their families. The BAH is calculated by location and pay grade, and the allowance is designed to provide service members housing compensation equitable to local civilian housing markets. The BAH can be used towards rent or a mortgage, allowing you to build equity in your home, even if you don’t have a down payment to get started.

Certificate of Eligibility

Borrowers can begin the loan process without the Certificate of Eligibility (COE) but it is required to move the loan through the steps toward completion. At GSF we can obtain the COE on your behalf. The VA ultimately determines eligibility and the COE verifies the duration and character of service that qualifies the borrower for the housing benefit.Since they are insured by the government, VA loans provide access to special benefits:

• No down payment required: The most attractive feature of VA loans is their zero percent down payment, so you can become a homeowner without having to save for a down payment.
• Lower interest rates: Military borrowers typically receive interest rates well below those of conventional borrowers.
• No monthly mortgage insurance premiums: Mortgage Insurance (MI) payments can costs borrowers hundreds every month – an expense you’ll never have with a VA loan.
• No prepayment penalty: You can sell or refinance at any time without having to pay a penalty.
• Reduced funding fees: You can qualify for reduced loan fees or exemption from funding fees for Veterans receiving service-connected disability compensation.
• Ability to finance the VA funding fee: The funding fee can be rolled into the entire loan amount.
• Less than perfect credit usually accepted: You don’t need to have perfect credit to qualify for a VA loan.

VA loan eligibility typically requires one of the following:

• 90 consecutive days of service during wartime 
• 181 of active service during peacetime
• 6 or more years of service in the National Guard or Reserves
• Being the un-remarried, surviving spouse of a service member who died in the line of duty, or because of a service-related disability