Veterans and Active duty military deserve affordable home ownership. You’ve served your country, and you should know how you can achieve significant savings when buying a home! Over 50% of all veterans and active military personnel do not understand the benefits and ins/outs of a VA Loan, and we are here to help answer your questions!
VA LOAN BENEFITS 101
SAVINGS & INTEREST RATES
You can finance 100% of your home purchase price with no money down. You will not be required to have private mortgage insurance (PMI), which all translates to money saved up front as well as on a monthly basis! Because the government backs your VA Loan, lenders have greater confidence, which means your loan and interest rates can compete with other loan types, such as conventional or FHA.
You do not have to qualify at the same credit score or have loads of cash saved up and can be approved for a VA Loan when you may not have otherwise qualified for a conventional loan. Additionally, you may use your VA Loan benefits many times over! (You may be required to make a down payment if you borrow more than your entitlement.) Also, while the Montgomery GI Bill expires 10 years after discharge, the VA mortgage benefits never expire!
While it is a common myth that you can only have one VA Loan at a time, the actual fact is that as long as you don’t exceed your maximum entitlement, you can have multiple VA loans. You simply must be able to afford all payments.
The funding fee can be rolled into your loan (typically 2% of the loan) and for anyone with service-related disabilities, the funding fee is waived.
Did you know that the VA Loan benefit also allows for refinancing? Currently, you can hold a credit score as low as 660 and be approved for the IRRRL program (Interest Rate Reduction Refinance Loan). Typically, no appraisal is required and the process is very streamlined (typically just a copy of the original Note and current mortgage statement).
In addition, the funding fee is reduced to .5% of the loan amount (which can be financed) AND the closing can be structured for zero cash out of pocket with a fast closing, in as little as two weeks from application!
TYPES OF HOMES ALLOWED / FORECLOSURES
The VA loan is for single family homes, in move-in condition. You will not be able to use your VA loan benefits for a home that has multiple repairs needed. Very few know this, but you can STILL use your VA benefits even after a foreclosure or bankruptcy!
Click here to learn more about the Heroes Home Advantage program, where we give back 25% of our commission to heroes who work with us, or here to learn about the 8th & Home preferred lenders, all of which are experienced with the VA Loan program.