A Comprehensive Guide to VA Loans for Oregon Residents
If You’re an Oregon Resident, Here’s Everything You Need to Know About VA Loans
In today’s mortgage world, we all know that understanding lending requirements and loan options is a necessity. And for military homebuyers, understanding VA loans is equally essential. Here in the state of Oregon, residents who are returning from service should be well versed in the benefits of a VA loan, because it can serve as a great resource for military homebuyers. So if you’re a returning or active service member, these are the details about VA loans that you won’t want to miss.
VA Loans 101
Created in 1944, the VA Loan program is an established mortgage loan option that is guaranteed by the VA, or the U.S. Department of Veterans Affairs, and issued by approved lenders. In the program’s 74-year existence, VA loans have helped over 22 million veterans and military families make the dream of purchasing a home a reality by requiring no money down.
In Oregon, veterans have access to both Oregon and Federal VA loans. Just like a standard VA loan, the Oregon VA loan makes homeownership affordable – even for veterans who may have issues with blemished credit. Still not sure which kind of VA loan is the right match for you? Don’t worry, we’ll dive into that later once we’ve covered VA loan eligibility.
VA Loan Eligibility
To qualify for VA loans, veterans and members of the armed services must meet one of the following requirements:
- “You have served 90 consecutive days of active service during wartime”
- “You have served 181 days of active service during peacetime”
- “You have more than 6 years of service in the National Guard or Reserves” OR
- “You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability”
If you meet one of the above requirements, you’re in luck if you’re ready to buy a home. At this stage, you’re nearly guaranteed for VA loan approval. Next up: deciding what kind of VA loan you should apply for as an Oregon resident.
Understanding the Different Types of VA Loans
As an Oregon veteran, it’s nice to know you have options when it comes to financing the American Dream of homeownership. First, let’s consider Federal VA loans. Here are a couple differentiators when comparing VA loans with conventional mortgages: credit requirements are more flexible, and VA Loans don’t require any money down.*
There are a few things to keep in mind about Federal VA loans, though. For starters, you are required to pay a funding fee, also referred to as upfront mortgage insurance. However, the funding fee can be rolled into the total home loan cost.
Oregon specific VA loans, also known are ODVA or ORVET loans, offer additional benefits. These VA loans are available to Oregon residents, and veterans who may be interested in moving to Oregon, too. The loans are similar to the Federal loans; however, interest rates are often lower because OVDA loans are funded through tax-free bonds.
But the main perk of an Oregon VA loan? Oregon VA loans don’t require a funding fee, which means veterans can save thousands of dollars through this program.
Gauging the Value of VA Loans
You’ve heard the perks of VA loans, but you might be wondering: how much money can you really get from a VA loan?
Aside from competitive interest rates, lack of private mortgage insurance, and no down payment, there are other lesser-known benefits of VA loans. For active military members, VA loan lenders let you apply your federally provided BAH, or Basic Allowance for Housing, as effective income. For buyers, this means you can apply your federal housing stipend towards your VA loan-funded mortgage, saving you potentially tens of thousands of dollars in the process.
Additionally, VA loans don’t charge a pre-payment penalty. This lets buyers pay off their loans on timelines that make the most sense for their personal circumstances.
Additional VA Loan Resources
Ready to start the process of applying for a VA loan? Options is here to help! Check out our full VA loan program details here!