Sr. Loan Officer
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 also increased the eligibility for Veterans and active duty personnel
and increased the benefits to Disabled Veterans.
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 costs. 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 Veterans Administration assesses a Funding Fee to all VA loans between .5% and 3. In an
FHA mortgage the customer must put at least 3.5% of the loan amount. The fee is added into
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.
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 at 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.
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 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.