VA Loans Idaho
If you've worked hard in the military, let VA loans work for you! By working with a VA-approved lender like District Lending, an eligible veteran can purchase a primary residence with no down payment, a competitive loan term, and no loan limits. District Lending can help you achieve your homeownership dreams.
The US Department of Veterans Affairs partners with private lenders to provide low-cost home loans to those with eligible military service. The VA will partially reimburse lenders should the borrower fail to pay the mortgage, which allows them to offer a competitive interest rate. With an Idaho VA home loan through District Lending, you’ll enjoy personalized financing solutions guiding you through all aspects of VA mortgage programs, ensuring you can get the home loan of your dreams.
Idaho VA Home Loans
While there’s only one military base in Idaho, 9% of the population are active service members or veterans. Every single branch of the military is represented here, including the National Guard, Coast Guard, Space Force, Navy, Air Force, and Army. Last year, over 2,800 Idaho service members received over $1.15 billion in funding to purchase a primary residence with a VA loan. We’d like to help you claim your VA loan entitlement. Speak to a loan officer today to see how we can assist you.
What You Need to Know About Idaho VA Loans
Even if you’re ready to sign your purchase agreement ASAP, you need to know the specifics about VA loans, which work differently than conventional loans. There are several more steps between you and your home mortgage, both based on the lender and on the VA itself.
Funding Fees
Though a VA loan does not require a down payment, it does require closing costs and a VA funding fee. This governmental fee partially reimburses the taxpayer for the cost of the VA loan program. It varies between 1.5% and 3.3%, depending on your mortgage balance information, loan-to-value ratio, and whether you have a previous VA purchase.
Loan Eligibility
Your eligibility for Idaho VA loans is based on your service status, duty length, and discharge type, which will be provided in a Certificate of Eligibility (COE) provided by the Department of Veterans Affairs. There may be other VA eligibility that is set by the lender itself.
Loan Insurance
You do not need private mortgage insurance with a VA loan, as it is backed by the government in case of default. This doesn’t mean that you have no insurance, though — lenders almost always require homeowners insurance for a VA home loan, just as they do with conventional mortgages.
Loan Interest Rates
Veterans appreciate a VA home mortgage because it entitles them to lower interest rates than would be possible elsewhere. For example, if the current mortgage interest rate for a 30-year fixed-rate conventional loan is 7.89%, you can enjoy a 7.08% interest rate instead.
Another way that qualified disabled veterans can save money is through exemptions on property taxes, making it simpler than ever to enjoy a beautiful and affordable home.
How to Know If You Qualify for a VA Loan in Idaho
First off, a VA home loan is meant for your primary home rather than an investment property. The property location needs to be approved as habitable by the local health authority. Beyond that, you need to meet the eligibility requirements set by the VA and receive a COE.
Duty Status
The VA has duty status requirements, which are based on time of service. You will have to have at least 90 days of active duty during wartime, 180 days during peacetime, or six years of National Guard service. Those disabled in the line of duty may have different requirements. Surviving spouses must have lost their loved ones due to injuries directly related to service.
VA Entitlement
Those who have never taken out a VA loan will have a full VA entitlement, meaning there is no limit to the loan amount they can take out.
If you have an existing mortgage through the VA, how much additional cash you can borrow depends on county loan limits. Most counties have loan limits of $766,550. Teton County is the only exception, where the loan limit is $1,149,825.
Discharge Status
You can receive a VA loan if you had an honorable discharge, which can be due to a medical condition, hardship, government convenience, disability, or early out. If you have any other status, you will need to get a discharge upgrade.
Decent Credit Score
Your current credit score will be a significant part of your approval by a lender. Those with a credit rating of 580 and above usually qualify, though every lender will have their own stipulations. Aim to boost your credit score as much as possible to get a good rate on your mortgage.
Low Debt-to-Income Ratio
While VA loans don’t have an annual income or current employment status requirement, you will need to meet the lender’s debt-to-income ratio requirements, which are verified with bank statements and account information. Typically, this is a maximum of 41%.
Waiting Period
It’s possible to have more than one VA home loan in your lifetime, but you will usually need to wait between three to four years before opening a new VA loan. You will also need to wait 210 days between closing your loan and making a refinance home loan request.
District Lending is Your Idaho VA Loan Partner
We love our veterans and active duty service members, which is why District Lending is proud to provide the best Idaho VA loans on the market. We also offer cash-out home refinance options and customized service to all of our clients, no matter where they served our country.
Our team will help you through every step of the Idaho VA loan process, including determining your eligibility, getting your COE, and closing on the deal. You can ask us any questions you may have about any element of a home loan — we’re happy to help, as we believe building trust is a key element of the loan process.
Contact us today to talk to a helpful loan officer who can guide you through this exciting new step in your life after service.
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