VA HOME LOANS

The VA Loan program is the most powerful and flexible home loan program on the market for veterans and military families. These flexible, government-backed loans come with significant benefits that open the doors of home ownership to veterans who might otherwise struggle to obtain financing.

VA loans require no down payment or private mortgage insurance. They feature competitive rates and terms and allow qualified borrowers to purchase a home with little to no money out of pocket.

The increasing popularity has stemmed from the loan program’s signature benefits, which include:

1. NO DOWN PAYMENT

Saving money and building credit can be difficult for service members who are constantly on the move. With the VA Loan, qualified borrowers can finance 100 percent of the home’s value without putting down a dime.

2. NO PRIVATE MORTGAGE INSURANCE

Most conventional lenders require borrowers to pay private monthly mortgage insurance unless they’re able to put down at least 20 percent, which is a tough task for many veterans. Private mortgage insurance (PMI) is an insurance that protects lenders in case of a borrower default.

With a VA Loan, however, there is no PMI. This is because the federal government backs all VA Loans and assumes the risk on behalf of the borrower that is typically covered by the PMI.

This VA Loan advantage allows you to build more and more equity in your house, effectively saving you thousands of dollars over the life of your mortgage.

3. COMPETITIVE INTEREST RATES

Interest rates on home loans are based on risk assumed by the bank to finance the loan. Because the VA backs each VA Loan with a guaranty, financial institutions carry less risk and can offer interest rates that are typically 0.5 to 1 percent lower than conventional interest rates.

A lower interest rate and the ability to purchase a home with no money down and no private mortgage insurance adds up to significant savings.

LOWER INTEREST = MORE SAVINGS

WHAT ARE THE REQUIREMENTS FOR A VA LOAN?

Veterans who qualify for a VA loan must obtain a Certificate of Eligibility (COE). Determinations of eligibility are based on the length of service and are issued to veterans who were not discharged dishonorably.

Although there are a few exemptions, including exemptions for veterans with disabilities, most VA loan includes a funding fee, which the veteran can finance. The funding fee ranges from 0.50% to 3.30%, depending on what type of loan the veteran is obtaining, down payment amount (if any), and whether it is his/her first time use of loan eligibility or a subsequent use. Some veterans may be exempt from paying the funding fee if they had a service connected disability.

What do I need to qualify for a VA Home Loan? Click Here!

or Call today Mike Marroquin for more information about qualifying for a VA home Loan and get your home search started off on the right foot!

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