Have you ever wondered exactly what a VA loan was?
A VA Loan is another government backed loan, exactly like FHA! Only the VA loan is backed by the Department of Veterans Affairs in Washington DC, and the FHA loan is backed by the Department of Housing and Urban Development.
The VA Loan in Orlando or the VA Loan in Florida is for veterans with enough ‘eligibility' to qualify for 100% financing. It is one of the better benefits bestowed upon our veterans for serving our country. Veteran status includes The Coast Guard, The Reserves and The National Guard.
Only Veterans and their spouses may use the eligibility. Surviving spouse may use it as long as they have not remarried.
The general maximum loan amount mirrors the conforming loan max of $417,000, including going higher, for example up to over $1,000,000 in ‘High Cost Counties".
All of the government backed loans, FHA, VA, and USDA/RD, have some sort of up front mortgage insurance factor and fee to compensate for the very high loan to value relative to conventional loans, and for the very low to non-existent monthly mortgage insurance relative to conventional loans.
A veteran's first time use would have VA funding fee of 2.15% added right on top of the base mortgage, which is probably the contract price. A $100,000 purchase would have a VA loan amount of $102,150.
Each and every time after that, the VA funding fee, right now, is 3.30%. The same $100,000 purchase would have a VA loan of $103,300.
The Reserves and The National Guard are slightly higher.
One problem that arises with the origination of many VA loans when the loan officer is not experienced is that there is an internal ration that the VA looks at, separate from the DTI ratio.
It is a bit more complicated, so look for my upcoming blog on this.
In the meantime, if you have any questions about a VA loan in Orlando area or a VA loan in Florida, call me 407-472-3443, 888-774-4410 ext. 232 or email me ABrown@GoFFMC.com anytime!
I am a specialist in VA loans and I can help you.
Andy Brown, "Not just another mortgage guy..."
Fidelity Funding Mortgage Corp
407-472-3443, 888-774-4410 ext 232
ABrown@GoFFMC.com
www.OnlineFloridaMortgage.com
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