VA 100% financing is offered by the Department of Veterans Affairs (VA) of our federal government. The VA recognizes the service our men and women have contributed to this great nation and they want to help by offering home ownership benefits exclusive to our military. Many of our Veterans are not aware that they can obtain 100% home financing and no monthly mortgage insurance to purchase a home.
VA loans are created by banks, savings and loans, and mortgage companies. They are guaranteed or insured by the Veterans Benefits Administration. The VA Home Loan Guaranty protects the lender in the unfortunate case the borrower fails in their mortgage payment. In a typical conventional mortgage, the lender gets this protection by requiring 20% down payment, or adding costly mortgage insurance to the loan.
VA loans are easier than you think. The application process is much the same as other home loan programs, but the lender will need the veteran's certificate of eligibility and a VA-assigned appraisal. Loans can be approved via automatic processing and closed without waiting for credit approval by the VA.
It is advantageous to VA borrower to get pre-approved as soon as possible. Once the borrower knows the amount they are eligible for they can start the home search in earnest. Sellers view buyer pre-approvals as serious, this is important especially if others are interested in the same home. Pre-approval tells the seller the pre-approved buyer is not going to waste their time: The buyer knows in advance what they can afford to purchase and are not looking to go outside their price range.
There are many applications to a VA home loan. Borrowers can purchase and upgrade a home at the same time, or even repair an existing one. The list of home improvements, and replacement items, range from replacing windows, roofing, appliances, and much more. One can use a VA mortgage loan to increase the energy efficiency of a home.
The VA even offers help for those looking to refinance. At little to no cost, streamline refinancing can help VA homeowners lower their monthly mortgage payments. Veterans should take full advantage of VA loan benefits and ask about interest rate reduction plans.
VA foreclosed properties are available too. They are offered in the same manner as HUD repos. If you are interested in foreclosed single-family houses, check your area on the following website: http://www.homesales.gov/homesales/mainAction.do Check with your VA Center or mortgage lender if you need more information regarding purchasing terms and conditions.
Less expensive than conventional programs VA home loans offer better rates and generally offer more money that can be borrowed at the start of the loan to pay varied costs and fees. The average state maximum guarantee is 25% or $104,250 and the maximum home loan amount is $417,000. Some states have a higher maximum guarantee and loan amount. Call your local VA center or mortgage lender for maximum benefits in your state.
Peter Boyle
Senior Mortgage Consultant
Serving the community 17 years.
http://www.peterboylehomeloans.com
pboyle@summit-mortgage.com
612-701-6816
No comments:
Post a Comment