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With more than 27 million veterans and service personnel eligible for VA financing, this loan is attractive and has many advantages. You may qualify for a VA Loan if you fall into one of the following categories:
- Active-duty Veterans discharged during WWII or later, without the status of "dishonorable"
- Active-duty Veterans with at least 90 consecutive days of service during major conflict
- Peacetime Veterans and active-duty personnel with at least 180 days of consecutive service
- Enlisted Veterans whose service began after 1980, or officers whose service began after 1981, and who have served at least 2 years.
National Guard and selected Reserve members may also qualify. Check your eligibility with a qualified VA Loan Specialist if you have any questions.
Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.
Contact us to discuss your scenario and to get Pre-Approved.
Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:
· No required downpayment for most cases
· Ability to finance the required VA Funding Fee
· No monthly mortgage insurance premium to pay.
· Limitation on buyer's closing costs. It is customary for the seller to pay for most of the buyers closing costs.
Why Would I Want A VA Loan?
There are several reasons why a VA Loan may be preferable to a standard loan. Most importantly, if you qualify, you may obtain a VA Loan even if you did not qualify for other loans. There may be no down payment required for a VA Loan, depending on the lender. VA Loans often have lower interest rates than conventional loans, and many times you can negotiate the interest rate with the lender. There are no mortgage insurance premiums on VA Loans, and assumable mortgages are permitted. Closing costs can be lower than other forms of financing, and there is no penalty for prepaying your mortgage. In addition, VA assistance due to temporary financial difficulty is available to those who qualify.
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Current VA products available:
Fixed Rate Mortgage
30 year fixed rate
As straightforward as you can get. Fixed rate. Fixed payment. Fixed term.. No prepayment penalty.
Hybrid Adjustable Rate Mortgages (ARM)
3/1 Initial interest rate is fixed for 3 years then the loan becomes an annually adjusting loan for the remaining 27 years.
5/1 Initial interest rate is fixed for 5 years then the loan becomes an annually adjusting loan for the remaining 25 years.
Adjustable Rate Mortgages have a few other terms associated with them. When considering an VA ARM it is always a good idea to know what the initial start rate is, what index the loan is tied to, and what the Initial, Periodic, and Lifetime Adjustment Caps are. VA ARMs have very attractive adjustments caps.
Over the past couple years ARMs have been given a bad name. If you know how these programs work they can be a terrific way to enjoy reduced housing payments. Contact one of our experts for a complete explanation of VA ARM products and whether they are the best option for you.
Transaction Types
Occupancy Types
Property Types
· Single Family Residence and Planned Unit Developments
· Condominium - low rise and high rise (must meet VA requirements)
· 2-4 unit properties |
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