VA Home Loans are a Huge Benefit to Veterans
Military Veterans have a wonderful home loan program available to them. It is by far the best loan product out there. With no down payment, no monthly private mortgage insurance, very low interest rates and flexible credit guidelines, this loan is certainly worth checking into.
Loans can cover the total purchase price and the appraisal is invoiced at closing so up front out of pocket costs are very minimal. The borrower will put a deposit with their offer to show good faith and may have a few inspection fees to pay prior to closing.
Terms for the fixed interest rate loans are 10, 15, 20, 25 and 30 years. There is also a 5/1 adjustable rate mortgage.
An up front VA funding fee is added to the loan balance unless the Veteran receives at least 10% military disability.
Borrowers need to have a minimum of two credit scores and there are requirements for number and length of the accounts. Chapter 7 Bankruptcy needs to be discharged for at least 24 months. Chapter 13 Bankruptcy must have been entered at least 12 months preceding loan application and paid as agreed.
The wait time on foreclosures is 24 months since discharge. Short sales are also allowed with some restrictions.
The seller, lender or other party may pay closing costs with no limitation on behalf of the borrower. In addition, the seller can provide concessions up to 4% of the value of the home. This can even be used to pay off accounts or judgments for the buyer.
There is no monthly private mortgage insurance. Escrows are required for home owner’s insurance and property taxes.
A quick look at interest rates for October 13, 2014, shows a VA purchase with a 640+ credit score can garner a 3.75% fixed rate for a 30 year term. On a $180,000 purchase, this equals a $853 monthly principal and interest payment.
In summary, VA home loans do not require a down payment, the seller can pay all closing costs for the buyer, there is no monthly mortgage insurance and are available with extremely low interest rates.
Veterans with a certificate of eligibility have an excellent benefit with VA home loans.
Provided by: JoAnn Moore, Licensed Mortgage Professional, NMLS #165477, The Mortgage Market of Delaware, Georgetown, Delaware . Office 302.855.1306, Cell 302.236.1229, MMODJoAnn@aol.com.