As realtors we sometimes miss the news about mortgages and sometimes need a re-cap of what some of the mortgage programs are like. Lillian has put out the basics of VA mortgages which I think are becoming more popular because of the larger number of veterans we have now.
VA loans offer very attractive benefits for our veterans and active military members and eligible spouses. Whether clients are first-time buyers or re-using VA benefits, this flexible, low-cost loan can accommodate a variety of situations. Highlights include:
- 100% financing on purchases up to VA county loan limits*
- No monthly mortgage insurance required**
- Flexible credit with FICO as low as 580***
- Low interest rate loans
- Loan amount to $2 million****
Many veterans don’t know that the VA allows multiple uses of the benefit. For example, if the borrower had a VA loan and paid off that loan or sold the home, they could then buy again using a VA loan. Alternately, if the veteran currently has a VA loan but has remaining entitlement to apply toward another home purchase, the veteran-borrower could have two mortgages with VA loans.
A good strategy would be to ask all your clients if they have served in the military. If they have, I can evaluate whether they meet the VA’s qualifying criteria. I can then help your clients understand their eligibility, figure how much they could qualify for and secure their Certificate of Eligibility.
Contact me anytime to learn more about VA loans.
* If VA County loan limits exceeded, a minimum down payment is required and minimum FICO score requirements apply.
** Most VA loans will require a funding fee.
*** Additional restrictions apply for FICOs
**** Additional restrictions apply for high-balance loan amounts.