Jason Bernabei, TriCastle Realty
DEL MAR – November 12 2012 : Goooooood Monday morning Sannnn Dieeeggo! And especially good morning and happy Veteran’s Day to all Vets and active military across the ole U. S. of A, as well as those serving overseas! I thought it appropriate to use today’s column to talk about some of the wonderful advantages Vets and eligible active military have in regards to pursuit of the American Dream of home ownership.
The VA(Department of Veteran’s Affairs) mortgage home loan affords a number of benefits comparative a conventional loan. Here’s the best of the best highlights:
~ Purchase a home for up to $417,000 with absolutely no down payment. Conventional loans require down payments from 5% -20%.
~ Unlike most other kinds of mortgage lending these days, VA loans are not primarily based on the applicant’s credit score, and thus afford low rates comparative to prospective mortgagors(borrowers) with stronger credit portfolios who are ascertaining conventional lending. AND the same low rate applies, irrespective of down payment, whether 10% down payment or no down payment at all.
~ VA loans do not require mortgagors to carry mortgage insurance(MI)! Compare this to conforming conventional loans, which require mortgage insurance on any loan with less than 20% down payment(or 80% loan-to-value ratio if it’s a refinance). With mortgage insurance premiums and rates on the rise, the absence of MI affords HUGE savings each month for the mortgagor.
~ There is no prepayment penalty on a VA loan, which means the mortgagor can refinance or sell at any time without having to pay a penalty. ~ VA loans are assumable.
~ VA loans allow mortgagors a higher debt-to-income(DTI) ratio than do conventional loans. DTI is a crucial factor in the loan qualification process, and many prospective mortgagors will only qualify due to the added percentage points afforded by a VA loan on DTI.
~ With a VA loan the seller is allowed to pay all of the closing costs of the prospective mortgagor, up to 6%, in fact. A conventional loan only allows the lender to pay closing costs up to 3% of the loan amount. If you are a United States Veteran or Active military and are interested in buying here in San Diego, or refinancing your existing VA loan, or know anybody who is interested in buying with a VA loan feel fee to contact me, Jason Bernabei, today for more information. Until next time San Diego, enjoy this great American holiday and the rest of your week!
Jay’s Outlook: The Future looks bright for Vets!
Jason Bernabei, CEO: TriCastle Realty P: 858-525-2456 E: jasonb@tricastle.com W: www.tricastle.com
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