VA Loans
The VA mortgage loans are one of the best and safest methods to
use when buying a home. Now even active duty personnel can qualify.
If you are a Disabled Veteran, you may qualify for additional benefits
on a VA home mortgage loan. The VA Home Mortgage Program does not
limit the number of times a veteran may use the program.
The VA mortgage loans extend to not only the Army, Navy, Air Force
and Marines but also to Reservists and National Guardsmen.
The Veterans Benefit Act, signed recently increased the VA loan
limit to $417,000 for a loan with no money down. It increased the
eligibility Veteran and of active duty personnel and increased the
benefits to Disabled Veterans.
Some of the benefits of the VA Mortgage Loan Program are:
• The VA Mortgage Loans is guaranteed for no money down up
to $417,000
• No monthly Home Owner’s Insurance is required
• Many VA Mortgage Loans are assumable
• It is easier to qualify for a VA Loan than a conventional
loan
• VA Mortgage Loans can be refinanced
No Money Down Up to $417,000
You do not have to put any money down to qualify for a VA Home Mortgage
Loan for up to $417,000. If the seller agrees to pay the closing
costs, you may be able to purchase the home with no out of pocket
cost. The loan and sales contract can be set up so that the VA Home
Mortgage Loan cover 100% of the selling price and the seller covers
the closing cost.
The VA Funding Fee
The Veterans Administration assesses a Funding Fee to all VA loans
between .5% and 3.3% of the loan amount. The fee is added into the
amount of the loan to be paid over the life of your VA home mortgage
loan. The VA Funding Fee replaces the much higher priced Mortgage
Insurance required when you get a conventional home loan. If you
are a Disabled Veteran, you may qualify to get the fee waived completely.
Assumable VA Mortgage Loans
VA loans are also assumable. If the person assuming the mortgage
is a veteran with VA eligibility, the original veteran will not
be giving up the amount of eligibility that they used to get the
loan a the beginning. Veterans should use great care and closely
investigate the terms of an assumption before allowing someone to
assume their mortgage. It is too great a benefit to give up.
Qualifying for a VA Mortgage Loan
The VA offers excellent qualifying standards. The VA does not use
credit scoring in their analysis of the loan. Even if you have experienced
some financial difficulties in your life that caused your scores
to be low but have maintained a good payment record over the past
year or so, you may qualify for a VA mortgage loan. This can be
a tremendous savings compared to the cost of conventional loans
when the borrower's credit scores are low.
VA Mortgage Loans may be refinanced
VA mortgage loans have built in features allowing a loan to be refinanced to a lower interest rate without all of
the criteria normally associated with a conventional loan. This
is called an Interest Rate Reduction Loan; the veteran can secure
a lower interest rate without any credit checks, appraisal, and
income or asset verification and can roll the costs of the transaction
into the loan so there are no out of pocket costs.