WhoooHoooToday is the First Day of Spring... a time of renewal. This is also a great time to review a topic that I am passionate about and am frequently asked about -
"I have VA Entitlement - What is the best loan for me"?
Today's mortgages have many variables... but for Wisconsin active duty personnel and veterans, the answer is quite simple. Get a Wisconsin VA guaranteed home loan - it is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces. Why? Because there is no down payment requirement, no private monthly mortgage insurance, rates are fixed and compete with conventional mortgage programs requiring a 20% down payment.
VA mortgage loans can be used towards purchasing a home, building a home, or refinancing an existing mortgage. A special feature called IRRL (internal rate reduction loan) enables an existing VA mortgage loan to be refinanced to a lower interest rate with very little documentation.
Outlined below are the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan, who is eligible for a VA loan, and the documentation you will need to present to your lender in order to apply.
Our active military personnel and Veterans alike have served us, now it is time to serve you. Currently there are over 27 million veterans and service personnel that are eligible for VA financing, however may are not aware that it is possible to purchase a home again using their VA Benefits - This can be accomplished by using the remainder of an entitlement, fully restoring your VA mortgage loan entitlement?
The VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.
The VA does not actually lend the money to you directly. The VA offers a guaranty to the lender that should default on the loan occur, they will pay the lender a percentage of the loan balance.
*The word GUARANTY does not actually guarantee the veteran will qualify for a VA home loan.
Primary Benefits of a VA Mortgage:
- 100% financing - allows you to keep your assets in investment accounts
- No monthly private mortgage insurance is required
- JUMBO loans available
- There is a limitation on buyers' closing costs
- The loan is assumable, subject to VA approval of the assumer's credit
- 30 year fixed loan -
- Seller can pay up to 4% of the veterans closing costs and even pay down they buyer's debt to help lower their debt-to-income ratio
- Interest rates are similar to FHA rates, with no private monthly mortgage insurance
- Credit Scores and Qualifying Criteria is more lenient - current FICO Score minumum = 620
Frequently Asked Questions:
Q: My parent is a veteran. Can I obtain a VA loan if I have not served in the military myself?
No, the VA loan benefit does not extend to a veteran's children; however surviving spouses can take advantage of VA benefits.
Q: What is required to prove my record of military service and confirm my income?
- - You Will Need Your DD214 Form (if retired)
- - Statement of Service (if active)
- - Copy of your LES (if active)
- - Proof of VA Rated Disability (if existing)
Q: My spouse who has passed away was an eligible veteran. I am eligible for the home loan benefit myself?
A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active duty service or as a result of a service-related disability.
Q: Is a VA loan better than a conventional mortgage?
In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, they do not require monthly private mortgage insurance when borrowing more than 80% of a home's value, and they can provide a more streamlined approval.
Q: How long does it take to get approved for a VA loan?
It varies depending on the current workload of your lender, but it is typically the same as for conventional mortgages - 3 weeks to 45 days. I am currently working with a veteran and his family and the current turn time has been 3 weeks.
- Served in: Army, Air Force, Coast Guard
- Marines, Navy, National Guard
- Public Health Service
- Actively Served 90 Days Minimum
- Honorable Discharge
- General Discharge (under honorable conditions)
- Served after September 16, 1940
- Plan to use home for your Primary Residence
If you need more information, contact a VA Loan Specialists - You are special and your circumstance requires special handling. I truly hope this information is of value to you. Thank you again for your service.