Tips for Military First-Time Home Buyers

Buying your first home is an undeniably exciting milestone–but it can also feel like an overwhelming process. Luckily for veterans, active-duty service members, and eligible spouses, VA loans provide unique benefits that make the process more affordable and accessible. 

At Commander Mortgage, we’re here to guide you along the way; that’s why we put this guide together. Below, we’ll explore the key advantages of VA loans, outline the requirements, and break down the home-buying process to help you make informed decisions on your path to homeownership.

VA Loan Benefits

VA home loans come with amazing benefits that can help make your dream of owning your first home a reality. 

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For first-time homebuyers, these benefits can make homeownership more attainable and cost-effective:

• No Down Payment Required - Unlike conventional loans that often require at least 3-20% upfront, VA loans allow eligible buyers to finance 100% of the home’s purchase price. This makes homeownership more accessible–especially for first-time buyers who may not have significant savings.
• Competitive Interest Rates - VA loans typically offer lower interest rates compared to conventional loans, potentially saving you thousands of dollars over the life of your loan. 
• No Private Mortgage Insurance (PMI) - VA loans eliminate the need for PMI, which conventional loans typically require for down payments of less than 20%, adding hundreds of dollars to your monthly payment.
• Flexible Credit Requirements - If you don’t have the best credit score, don’t worry. While lenders will review your credit score, VA loans often have more lenient credit requirements than conventional loans.
• Flexible Debt-To-Income Ratio - VA loans allow for a more flexible debt-to-income (DTI) ratio compared to conventional loans–especially if your overall financial picture is strong.

Learn more about VA Loan Benefits.

How to Qualify for a VA Loan

In order to qualify for a VA loan, you’ll need to meet specific service-related criteria, along with some basic financial requirements relating to factors such as your credit score and income.

Veterans, active-duty service members, National Guard members, and eligible spouses meeting one of the following criteria may be eligible for a VA loan. 

• 90 consecutive days of active-duty service during wartime
• 181 consecutive days of active-duty service during peacetime
• 90 days in the National Guard and Reserves since August 2, 1990, or 6 years in the Selected Reserve or National Guard
• Surviving spouses of service members who are missing in action, prisoners of war, or 

have died during active-duty service or as a result of a service-related injury

There are a few exceptions, as well, including discharge due to hardship, medical conditions, and more. For a detailed guide, visit our VA Loan Eligibility Page.

First-Time Homebuyer Guide

As a first-time homebuyer, it’s essential to understand the steps involved in applying for a VA loan and buying a home. Here’s a breakdown of the process:

1. Confirm Your VA Loan Eligibility

Before applying, make sure you meet the VA loan eligibility requirements. You may qualify if you’re a veteran, active-duty service member, National Guard or Reserve member, or the spouse of a service member who meets specific criteria, as outlined above. 

2. Apply for a Certificate of Eligibility (COE)

Your Certificate of Eligibility (COE) proves your eligibility for a VA loan. You can apply through the VA website or ask your lender for help. Veterans and active-duty members typically need discharge or separation papers, while spouses will need additional documentation.

3. Get Pre-Approved for a VA Loan

Pre-approval is key to understanding your budget and making competitive offers on homes. During this process, your lender will review your financial and credit information to determine how much you can borrow.

4. Start House Hunting

Here’s the fun part: starting your search for the home of your dreams (and your budget). It helps to work with a real estate agent experienced with VA loans to find properties that comply with the VA’s property requirements.

5. Complete Your VA Loan Application

Once you’ve chosen a home, it’s time to finalize your loan application by providing personal identification, your COE, proof of income, asset statements, and debt information. We’ll be there to help guide you through this process.

6. VA Appraisal

A VA appraisal ensures that the home’s value aligns with the purchase price and meets the VA’s minimum property standards before your loan is approved.

7. Underwriting, Final Approval, and Closing

Finally, your lender will review all documents during underwriting to confirm you meet VA requirements. After final approval, you’ll close on your home and officially become a homeowner. Woohoo!

Ready to Take the Next Step?

At Commander Mortgage, we’re dedicated to helping first-time homebuyers navigate the VA loan process with ease. Our team is here to support you with care and respect every step of the way, from confirming your eligibility to closing on your dream home.

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Ready to get started?
Apply for Your VA Loan Today!

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