Veteran Home Loans in Delaware
Delaware is home to many Veterans and Active Duty Military Personel. The Veterans Administration created the VA Home Loan to best serve their service members. The loan guidelines are somewhat more relaxed than other loan products.
The no down payment is the biggest benefit. Along with that, there is no required monthly mortgage insurance. This is huge. (FHA charges $141.66 per month on a $200,000 loan amount. USDA charges $58.33).
Interest rates on Government loans are most times lower than conventional loans.
There is an upfront funding fee added to the loan amount but for any Veterans with at least 10% military disability income, this upfront fee is waived. Otherwise it is 2.15% for first time loan and 3.33% on subsequent uses of eligibility.
Most of the closing costs, transfer taxes and upfront escrows can be paid by the seller. An earnest money deposit will need to be placed with the buyer’s purchase offer. This is normally $500 - $1000. Home inspections and water tests are usually paid at time of service.
VA also has a great streamlined refinance loan program; IRRRL, Interest Rate Reduction Refinance Loan. The upfront funding fee is .5% of the loan amount but is waived for borrowers with at least 10% military disability income. This loan is available for VA to VA loans.
Other loans can be refinanced into VA loans but not with the streamline guidelines.
Some Veterans may not be aware they can take advantage of these awesome benefits. When weighing the loan options most always, the VA loan is the best choice.
If you or someone you know is interested in finding out more about these loans, contact a professional mortgage professional.
JoAnn Moore, NMLS #165477, The Mortgage Market of Delaware, LLC, Licensed Mortgage Loan Originator, 302.855.1306, 302.236.1229, MMODJoAnn@aol.com