Another of The Mortgage Group's popular sources of purchase or refinance loans is the VA (Department of Veterans Affairs) Loan. This is a government agency that aids veterans of the U.S. Armed Forces in various ways, including guaranteeing home loans with LOW or NO DOWN PAYMENTS for qualified veterans. VA loans are assumable with credit approval for the new buyer. A veteran's entitlement is reinstated when the loan is fully paid off and he or she no longer has title to the property. This means that if you had a VA loan and it has been paid off, you can get another VA loan now.
VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. Lenders generally limit the maximum VA loan to $207,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan. VA-guaranteed loans are obtained by making application to private lending institutions.
In addition here are a few good reasons for obtaining a VA loan: You may purchase or build a home, repair or alter a home, simultaneously purchase and improve a home, refinance an existing loan, buy a manufactured (mobile) home and/or lot, or refinance an existing VA loan to reduce your monthly obligations. Also, in certain cases these loans can be acquired with NO LOAN FEES to the borrower.
VA Streamline Refinances
This particular type of refinance is similar to the FHA Streamline program. A minimal amount of documentation is needed.
Who is eligible for a VA loan?
Veterans with active duty service, that was not dishonorable, during World War II and later periods are eligible for VA loan benefits. The Korean conflict, the Vietnam era and Persian Gulf conflict are also eligible. Members of Selective Reserve and the National Guard may also be able to receive assistance. Contact the local VA for more information.
How is this loan different than a conventional or FHA?
- There is usually no down payment in most cases.
- The maximum loan amount may be up to 100 percent but usually do not exceed $203,000 .
- There are flexible but competitive interest rates.
- There is no monthly mortgage insurance to pay.
- There is a limit on the closing costs that a lender can charge.
- Fixed and Adjustable rate mortgage loans are available.
- A VA loan is always assumable.
- There is no prepayment penalty.
- There is no limit on the size of this type of loan - but usually the lender limits the loan amount to 4 times the amount of the veteran's entitlement.
- You can have previously used your entitlement and it can be restored so it can be used again. Contact VA office for more information.
- A VA loan can refinance an existing home loan up to 90 percent of the value
- A VA loan can be used to purchase a manufactured home.
