​VA Loans

King Financial can skillfully assist Veterans in the Colleyville, Flower Mound and Southlake areas with VA loans.

VA loans are government-secured loans for Veterans and are administered through the Veterans Administration. Eligibility for VA loans is mostly based on a Veteran’s duty status. Spouses, widows and widowers may also qualify depending upon meeting specific criteria. 

Funding is provided to qualified Veterans by the VA via purchase loans. A cash-out refinance loan is also available for Veterans looking to acquire cash from their current property’s equity. Borrowers do not need to be first-timers, as VA loans can be re-used.

The VA must approve a home a purchase loan is used for. Funding can also support renovations, the acquisition of manufactured homes and the installation of energy-efficient improvements around a home. 

Loosened credit specifications are among the many appeals of VA loans, along with Veterans receiving friendly interest rates upon buying a property. Up to 100% of a property’s value may be guaranteed via a VA loan, plus non-VA loans can be refinanced into VA loans. 

The Veterans Administration does not become intricately involved, as it is private lenders who handle the processing of VA loans. A portion of the loan is guaranteed by the VA, which protects private lenders and their losses in the event a borrower fails to repay their loan. 

The outcome of the VA’s guaranty is a borrower then appears far more attractive to lenders, who in turn offer the borrower more favorable conditions. Among the most common conditions borrowers receive is 0% down payment, with the requirement being the property’s price is less than its appraised value. Also, borrowers often do not have to pay private mortgage premiums.

VA loans are also appealing to Veterans because of they can fund closing costs. There are limits on how much Veterans can indeed be charged for closing costs, and lenders are forbidden to penalize Veterans who repay their VA loan in full early. Under certain criteria met by the person assuming the loan, the loan itself can become assumable.

Within eligibility guidelines set forth by the VA to be awarded a VA loan, the home utilized for the loan must be the main residence of the borrower. An adequate income is needed by the borrower, as well as a verified Certificate of Eligibility. COE applications can be submitted online, through the mail or via a private lender.

Although there’s technically no limit on how much funding a borrower can receive, the VA does enforce loan limits on the amount of liability it will assume. Thus, the total of funding a lender can provide to a borrower is impacted.

Loan limits are the total a borrower with a full entitlement can receive minus the obligation of a down payment. Typically, up to four times a Veteran’s entitlement ($36,000) is awarded by lenders presenting VA loans. However, to receive the full portion, a borrower needs to have solid credit and income, plus the property’s asking price and appraisal price need to be identical. 

Regarding loan limits—due to the location of a home heavily factoring in the determination of its value—they can differ by county. King Financial is a leading Texas company in the Colleyville, Flower Mound and Southlake areas, which are in Denton County and Tarrant County. 

The loan limits for those counties are as follows:

County One-Unit Limit Two-unit Limit Three-Unit Limit Four-Unit Limit
Denton $417,000 $533,850 $645,300 $801,950
Tarrant  $417,000 $533,850 $645,300 $801,950
King Financial can help all those who qualify for VA loans! Call us today at (972) 539-2500!

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