VA Home Loan Basics

VA Home Loan Information for Veterans

Veterans, did you know you can refinance your current VA home loan with very little paperwork? Plus you can do it without an appraisal.

For example: A Veteran can obtain a refinance of $300,000 to pay off a current VA home loan.  The loan to value is unlimited as no appraisal is required. You can actually owe more on your loan than your home is valued and still get the loan.

Current low interest rates allow for 3.25% fixed rate interest for a thirty year term and 780 credit score. This equates to an estimated $1312 principal and interest payment. Plus, no mortgage insurance is required on VA home loans.

Veterans with other types of loans can also obtain VA home loans but these would need an appraisal. The loan to value ratio can be up to 100%. Plus, again, no private mortgage insurance.

Veterans can qualify for VA home loans with credit scores as low as 580 on regular stick built homes and Class C double wide manufactured homes.    

The upfront VA Funding fee is waived if the Veteran receives any military disability income on at least 10% disability.

First time use of the VA eligibility has a 2.15% up front funding fee and 3.3 % after that. The upfront funding fee is reduced to 1.5% with down payments of 5% - 9.9% and down to 1.25% on down payments of 10% or more.

The streamlined VA refinance (VA loan to VA loan) has an upfront funding fee of .50%.

If you are a Veteran and have your DD-214 and/or Certificate of Eligibility, it would be a good idea to check further into what great loan programs are available to you.

Article written and submitted by:  JoAnn Moore, Licensed Mortgage Professional, NMLS # 165477. The Mortgage Market of Delaware P O Box 204 Georgetown, Delaware 19947. 302.855.1306, MMODJoAnn@aol.com           

 

JoAnn Moore