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Why a VA Loan?

By
Mortgage and Lending with Cambria Mortgage NMLS 274132

A VA loan is perhaps the most amazing loan in the housing market today!

Minneapolis, MN: Rather than issue loans, the VA instead pledges to repay about a quarter of very loan it guarantees in the unlikely event the borrower defaults. That guarantee gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified active duty personal and veterans.

VA Loan Solutions Right For You!
Whether you’re buying your first home with a VA loan, or you’re an experienced buyer using your VA benefits again, we have the right VA loan for you!a home lending solution just for you.


Get a No-Obligation Rate and Closing Cost Analysis!

Benefits of VA Loan
Far and away, the most significant benefit of a VA loan is the borrower’s ability to purchase with no money down. Apart from the USDA Rural Development loan, there are essential no other nationwide mortgage loan programs that offer 100 percent financing. 

VA loans are also a bit more liberal in the underwriting standards and requirements than many other loans. For example, allowing for lower credit scores than conventional loans. These loans also come with no monthly mortgage insurance (PMI), a added expense that other loans require borrowers to pay unless they put down at least 20 percent of the loan amount. 

VA loans offer a few other bells and whistles:

  • Down payment as low as 0% up to $484,350 in MN, WI, SD (where we lend). May be higher inother states
  • Interest rates that are routinely lower than conventional rates
  • No prepayment penalties
  • Higher allowable debt-to-income ratios than for many other loans
  • Streamlined refinancing loans (called an Earl) – IRRRL loan with no appraisal needed
  • Cash out refinance – Get up to 100% of the homes appraised value. Use the money for anything you wish!


Realtor’s are often wrong about VA Loans
Unfortunately, many Real Estate Agents have a unrealistic negative understanding of VA home loans. If you are making an offer on a home with a VA, many agents will improperly advise the sellers to select other offers over a VA loan offer.

Not only is discriminatory, it is flat out wrong, and usually based on old wives tales past around the real estate agent world, versus actual experience from the agent.

If your Real Estate Agent talks negatively about a VA loan – FIRE THEM – IMMEDIATELY!

I ALWAYS contact the listing agent personally when you submit your offer to see if they have any illogical feelings towards VA loans, and if they do, I set them straight! 

Second VA Loan (or 3rd, 4th 5th…)
After getting one VA loan, often veterans think they can’t get a second VA loan. That’s not true. Your VA home loan benefits can be used over and over again. In fact, you can actually have two or more VA loans at the same time. If a VA lender has turned you down for a second VA loan you shouldn’t give up. A second VA loan is allowed by the Veterans Administration!

VA Loan Application

Ready to get started with your VA Loan? We make it easy. Most people start by 
completing the online application. It only takes about 15 minutes, and all the information you need to complete the application is in your head, No need to go find documents, or look up anything at this stage.

You can always call our local VA loan Experts at (651) 552-3681.

Finally, you can schedule an office appointment at our St Paul location, or schedule a telephone application. Just click this scheduling link, along with a day and time that works best for you.

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The Department of Veteran Affairs requires mortgage companies who offer VA Loans go through a stringent approval process. We are a VA approved mortgage lender and are proud to help military families use their VA Loan Benefits for home located in Minnesota, Wisconsin, and South Dakota. We are not acting on behalf of, or under the direction of the VA or the Federal Government. The Veterans Administration does not lend directly to the public, only through approved lending institutions like Mortgages Unlimited. NMLS 274132. Equal Housing Lender.

Comments(2)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

VA loans can be a great way to go But the costs are much higher from what I ave seen

Feb 05, 2019 09:17 AM
Joe Metzler
Cambria Mortgage - Saint Paul, MN
Sr Loan Officer

Another myth to dispel.

Costs costs are limited by the VA rules, so VA loans actually have LOWER true closing costs than other loans.  Interest rates are also generally about 1/4% lower than an excellent credit conventional loan. WIN WIN

Not sure where you "costs are higher" comes from. I do VA loans all day every day, and run actual loan comparisons on a regular basic. I've never seen a costs are higher scenerio unless the client is putting 20% down or more, under which case I wouldn't suggest a VA loan anyway.

Usually when people talk about  "costs higher", they are talking about the funding fee.  The VA funding fee varies depending on first use, subsequent use, regular military, reserves/national guard, and if they choose to make a small  down payment or not.  There is also no funding fee if the person has at least a 10% VA related disability.

Even under the most expensive of VA funding fees, the fee is not an out-of-pocket expense. Then, factoring in the VA funding fee, the client is still 1000% better off mathematically than any conventional loan, or FHA loan with monthly mortgage insurance. Way worse are FHA and USDA loans that have both have up-front mortgage insurance premium (MIP) AND monthly mortgage insurance. FHA with a small down payment, mortgage insurance is life of loan, and USDA monthly mortgage insurance is always life of loan.

Our military personal love the VA loan, and rightfully so. Agents shouldn't seriously risk current, repeat and referral business by ignorantly speaking negatively about a loan they love, and is so right for so many.

 

Feb 05, 2019 10:02 AM