VA Loans with
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We understand the challenges facing our military veterans. Life after the military may come with both emotional and financial difficulties in transitioning, and you may need help making ends meet. Our VA loan can give you the help you need!
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What is a VA loan?
A VA loan is a private loan insured by the United States Department of Veterans Affairs (VA). This loan is intended to assist eligible veterans with home financing with no down payment.
Who qualifies for a VA loan?
VA loans are only available to qualified military veterans and their families. More specifically, a VA loan program is created to help American veterans, currently-serving military members, reservists, and select surviving spouses. To qualify for a VA loan, one must meet the minimum number of days of completed service and satisfy specific duty status and character of service. VA loans are only available to these individuals for their own primary residences and cannot exceed a $417,000 loan limit.
Pros of a VA loan
No down payment
Unlike FHA and conventional loans, qualified veterans can purchase homes worth up to $417,000 without making a down payment.
Lower closing costs
VA loans include limited closing costs, with the lenders fees restricted to 1% of the loan amount compared to 3% or more when borrowers take out a conventional mortgage.
Higher DTI ratio allowed
A lower debt-to-income ratio attracts lenders as it indicates that the borrowers would be able to more successfully manage their monthly payments. The VA benchmark is set higher than that, which allows qualified veterans to get back on their feet through secure VA financing even if the debt is significantly higher. While the federal government typically requires a 41% or less debt-to-income ratio, it is still possible for qualified borrowers with a higher DTI ratio greater than 41% to get a home loan.
No prepayment fees
If the funds allow, paying your VA loan earlier than scheduled is completely safe and does not trigger any prepayment penalties.
The VA home loan program comes with several refinance loan options that can help qualified veterans lower their monthly payments or get cash back from their equity.
No private mortgage insurance (PMI)
Whereas FHA and conventional borrowers typically have to commit to paying mortgage insurance if unable to make a down payment, there is no private mortgage insurance to be paid off on a VA loan.
Reusable VA Benefits
Yes, it is true - VA benefits can be used more than once! Even if the home financing loan entitlement was used in the past, there is a good possibility of restoring it again.
Flexibility with bankruptcy and foreclosure
Even two years after a bankruptcy or foreclosure, qualified veterans can still be eligible for a VA loan. Other types of loan usually require a longer wait.
Pros of a VA loan
VA Funding Fee
Once funded through a VA loan, a veteran is obligated to pay a mandatory VA Funding Fee charged by the VA. This fee for the initial VA loan borrower is 2.15% of the loan and 3.3% for subsequent VA borrowers. Borrowers with service-connected disabilities are exempt from paying the fee. FHA loan or conventional loan do not require this type of fee.
Only primary residences
A VA loan is not intended for veterans who are looking to buy a second home or an investment property. This loan is intended only for primary, occupied residences.
Even though these beliefs are largely misplaced, some real estate agents and the sellers they represent still look unfavorably at offers from VA borrowers. There were some misconceptions in the past about VA loans taking longer to close. With the standardized inputs and computer modeling, VA programs are proved to include smoother, faster operations.
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