As part of the Servicemen’s Readjustment Act of 1944, the VA Loan program was created to help American veterans obtain home loans in situations where alternative financing may be difficult to obtain. By partially guaranteeing home mortgages, the U.S. Department of Veterans Affairs (VA) makes it possible for Oregon veterans to receive very favorable loan terms and conditions when compared to other mortgages. At American Pacific Mortgage, we are proud to offer Oregon veterans low rates and favorable terms on VA loans throughout Happy Valley, Portland, Damascus, Boring, and Gresham.
Before applying for a VA loan, you must be eligible. Fortunately, most veterans, military, and spouses of deceased military members will meet eligibility requirements. Active-duty members will become eligible to apply for a VA loan after roughly 6 months of service. Members of the National Guard and reservists will need to wait 6 years before becoming eligible however if they are called to active duty, eligibility will take effect after 181 days. If possible, you will want to obtain your Certificate of Eligibility (COE) as early as possible to avoid any delays. If you do not have your COE, we can help you obtain this documentation during the preapproval process. VA loans offer a number of advantages over other popular mortgage options.
Oregon VA Loan benefits:
- Zero 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)
Oregon VA Loan Limits
The VA has no minimum credit score requirement for Oregon VA loans but many lenders will require a credit score of 620 or higher. Lenders may offer flexibility in this area, but higher interest rates may be charged for lower scores. Be prepared to provide copies of W2 statements and previous pay stubs to verify income. Additional documentation of assets such as checking accounts, savings accounts, and other financial investments will also be needed.
VA loans are available for both purchases and refinances. Cash Out Refinance loans and Interest Rate Reduction Refinance loans are both available depending on a borrower’s specific needs.
- Purchase Loans – Competitive terms, rates, and down payment options on loans for the purchase of a new home.
- Cash-Out Refinance Loans – Veterans with equity in their homes can take advantage of cash-out refinance loans to acquire extra cash for various expenses such as home improvements or high-interest debt consolidation.
- Interest Rate Reduction Refinance Loan (IRRRL) – Veterans who currently have a VA loan can refinance that loan at a lower rate through an IRRRL. This particular type of refinance loan is also referred to as a VA Streamline Refinance Loan.
Whether you are looking to purchase your first home in Portland, or an existing VA loan holder interested in refinancing the mortgage on your home in Happy Valley, our team of Oregon VA loan experts at American Pacific Mortgage is here to help you. For more information on VA loans or to begin the prequalification process, contact us today.