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4 Overlooked Facts About the VA Mortgage Loan


By Lawrie Vick, Branch Manager, Northern Virginia 

As a member of the military community, the first step in owning the home of your dreams may be understanding the VA Loan and how it works. The VA Loan offers valuable benefits to those who are eligible, but sometimes those benefits are overlooked. We’ve provided  four often overlooked insights  about the VA Loan below

  1. VA interest rates are historically lower than conventional mortgages, making the VA Loan a better option in the long run. However, while the VA Loan is well known for not requiring a down payment, some buyers think that if they can offer a down payment they should. Many lenders look to place those who offer a down payment into a conventional loan, which often comes with a higher interest rate than a VA Loan.
  2. VA Loans are assumable, meaning that a homebuyer can assume the home seller’s current mortgage. This is especially attractive in a rising interest rate environment, as the current homeowner’s interest rate may be significantly lower than the current average.
  3. VA Loans often do not require a down payment if you are purchasing within the loan limit. If you are above the area loan limit, you will need to put money down, and in some cases, the down payment could be significantly less than your typical FHA or Conventional loan. Often buyers think the VA has a maximum lending limit.  They don’t, but rather only establishes a limit on how many loans they will insure.
  4. The underwriting requirements on a VA Loan are normally less stringent than other types of financing. VA loans do not have a minimum credit score requirement. The VA can also finance your purchase two years after foreclosure or bankruptcy, depending on the circumstances surrounding your reasons for default. If the foreclosed loan was from the VA, you may be required to pay part of the loss.

Looking to use the VA Loan to purchase your home? AAFMAA Mortgage Services LLC can help. We are currently offering a new promotion: If you close and fund a VA Mortgage with us before September 30, 2018, we will provide up to $2,000 of your closing costs!

Is the VA Loan your best option? Ask our professional team of Mortgage Loan Officers. They will help you navigate through the mortgage process and help you find the best option which fits your needs best.

Call 844-218-6926, or visit us at aafmaa.com/mortgages for mortgage resources including access to our education center, checklists and calculators. We look forward to serving you and your military family!

Use our calculators to help you determine how much your monthly VA Loan payment might be.

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Lawrie is the Branch Manager of AAFMAA Mortgage Services in Northern Virginia. She has been in the mortgage industry for more than 30 years, meeting the needs of clients and real estate agent partners in Virginia, North Carolina, Maryland, and Florida. Lawrie was the owner of Severn Mortgage Corporation, one of the largest independent mortgage companies in Leesburg, Virginia, for more than 11 years.

She has three children and three grandchildren and enjoys her homes in Northern Virginia and the Hampton Roads area. Lawrie serves as an on-call Chaplain at INOVA Loudoun Hospital and is currently working on her BS in Ministry and Clinical Pastoral Services. Lawrie also grew up in a military family, with family members serving in the Navy, Army National Guard and Reserves.


AAFMAA Mortgage Services LLC is an Equal Housing Lender and is a VA-approved lender not acting on behalf, in the direction of, endorsed or sponsored by the Department of Veterans Affairs or any government agency. This is not a commitment to lend or an offer and is for information purposes — your actual rate, payment and costs could be higher. Not all borrowers will qualify. Up to $2,000 towards closing costs for VA loans that fund only during the time period stated (and not to loans that don’t fund beyond 9/30/2018). Get an official Loan Estimate before choosing a loan. This is for VA mortgages (refinance and purchase) only. NMLS ID # 1423968. http://www.nmlsconsumeraccess.org/. For further state licensing and disclosures, visit www.aafmaa.com/mortgage. 639 Executive Place, Suite 203, Fayetteville, North Carolina 28305. 844-218-6926. Licensed Lender in Alabama 22416, Colorado, Connecticut ML-1423968, Delaware 0243333, Florida MLD1376, Indiana 34842, Iowa MBK-2018-0075, Kansas MC.0025489, Kentucky MC401802, Maryland 22541, North Carolina L-167411, Oklahoma ML011430, Oregon ML-5730, Lender and Broker in Rhode Island 17050098480, Pennsylvania 61781, Tennessee 135339, Lender and Broker in Virginia MC-6685. Contact AAFMAA Mortgage Services LLC for current rates and a full Loan Estimate. This is not an offer and rates displayed may not be available at the time of rate lock. On April 20, 2018, rates and fees for a 30-year term, $200,000, VA fixed mortgage, with a 720 credit score, in the State of North Carolina were 4.125% with an APR of 4.353%. Loan to value is 100%. Principal Residence. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply. Payment is $969.30 (principal and interest only). No prepayment penalties. Not all borrowers will qualify. This is good for loans that close. AAFMAA Mortgage Services LLC is a licensed mortgage lender located at 639 Executive Place, Suite 203, Fayetteville, NC 28305, NMLS # 1423968. Disclaimer date of 07/25/2018. Disclaimer will be updated in the event promotional items change/occur or new licenses for AAFMAA Mortgage Services LLC are finalized.