Eager to know the benefits of a government-backed VA loan?


Zero Down Payment: One of the most significant advantages of a VA loan is the ability to finance up to 100% of your home's purchase price. This means you can buy a home without needing to put any money down, making homeownership more accessible, especially for first-time buyers.

No Mortgage Insurance: Unlike conventional loans that typically require private mortgage insurance (PMI) if your down payment is less than 20%, VA loans do not require mortgage insurance. This saves you a substantial amount of money on your annual insurance premiums, reducing your overall monthly payment.

Flexible Credit Requirements: VA loans are designed to help veterans and active-duty military members achieve homeownership, even if they have less-than-perfect credit. The credit requirements for VA loans are more lenient compared to conventional loans, making it easier for those with lower credit scores to qualify.

Lower Closing Costs: The Department of Veterans Affairs places limits on the amount lenders can charge for closing costs, helping to keep your out-of-pocket expenses lower. Additionally, some borrowers may qualify for zero lender fees, and the VA prohibits certain fees such as broker commissions, lender attorney fees, and prepayment penalties.

Multiple Usages: The benefits of VA loans aren’t just for first-time homebuyers. There are no limits on the number of times you can apply for a VA loan, as long as you continue to meet the eligibility requirements. This flexibility allows you to take advantage of VA loan benefits whenever you decide to purchase a home, whether it's your first or your fifth.

With these compelling benefits, VA loans offer a powerful tool for veterans and active-duty service members looking to achieve their homeownership dreams.

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.

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