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Our Heroes: Our Priority

Our Priority: Honoring Those Who Serve

The Federal Savings Bank is a veteran owned and operated bank with a mission to help serve our active service members and veterans.

Many of our team members including those in executive leadership have also served our country, and are dedicated to helping our veterans, active-duty personnel, reservists/National Guard members, and qualified surviving spouses secure a home loan.

What is a VA home loan?

A VA home loan is specifically designed for veterans, active-duty military service members and their families who would like to buy a home. These loans are backed by the U.S. Department of Veterans Affairs and often offer fewer restrictions than other types of mortgages.

VA home loans have no down payment, no private mortgage insurance (PMI), and offer competitive rates. Because of these things, coupled with more lenient credit scores and income requirements than conventional mortgages, there is a big draw to using a VA home loan.

When a veteran or active-duty military member is ready to apply for a VA home loan, they must obtain a certificate of eligibility (COE). Active-duty military personnel generally qualify after about six months of service. Reservists and members of the National Guard must wait six years to apply, but if they are called to active duty before that, they gain eligibility after 181 days of service.

To apply for a COE, eligible service members, veterans and spouses must meet one of the following criteria:

  • Served 90 consecutive days of active service during wartime.
  • Served 181 days of active service during peacetime.
  • Have been an active member of the National Guard or reserves for 6 years or more.
  • Are married to a service member who died in the line of duty or because of a service-related disability.
It’s important to note that getting a COE doesn’t mean you’ve qualified for a mortgage — these are two separate processes. Once you qualify for a COE, you can start the mortgage process, and you still must meet lender requirements which include things like income verification, credit (FICO) score, and debt-to-income ratio.

With the VA home loan option, qualified veterans or active-duty personnel can finance up to 100% of the purchase price of their home.

For that reason, The Federal Savings Bank can offer a lower interest rate, regardless of the down payment amount, with no private mortgage insurance payments.

While our mission is to help our active service members and veterans, it is still important to work with an experienced mortgage banker to fully understand your options when considering a VA home loan.

Key Things to Remember

  • A VA home loan can only be used on a primary residence; it cannot finance a second home or investment property.
  • VA home loans have no down payment, no PMI, lower interest rates and usually easier qualification terms.
  • Veterans can use basic allowance for housing to pay some or all their monthly mortgage costs.
  • The VA home loan allows borrowers to pay off their home loan at any point without having to worry about a pre-payment penalty.
  • Veterans with conventional home loans now have the option to refinance to a VA home loan, often for a lower rate than a typical refinance.

Only the following qualify for VA Home Loan:

  • Veterans
  • Active duty personnel
  • Reservists/National Guard members
  • Qualified surviving spouses

To learn more about qualifying for a VA home loan, call to speak with one of our expert mortgage bankers or if you're ready, get started today.

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The above information is for educational purposes only. VA loans do have a funding fee.  The funding fee may be waived if you have a disability.  Ask your banker for more information.