VA Loans

The Veteran Administration (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.

Benefits of VA Mortgages
  •  The VA mortgage loan is guaranteed for no money down up to $417,000
  •  VA mortgage loans are assumable
  •  It is easier to qualify for a VA loan than a Conventional loan
  •  VA mortgage loans can be refinanced

The VA Funding Fee 
The VA funding fee is currently 2.15% of the loan amount for a first-time VA borrower and 3.3% of the loan amount for subsequent use and 0.50% for a VA IRRRL (interest rate reduction refinance loan). 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 obtain a Conventional mortgage. Disabled Veterans might qualify to get the VA funding fee waived entirely.

Assumable VA Loans 
VA loans are assumable. An assumption involves the transfer of ownership and release of liability of a VA-guaranteed loan. An assumption may be processed with or without a substitution of entitlement. 

Without: The original Veteran’s entitlement remains encumbered by the loan until the loan is paid in full. The seller would not receive a restoration of entitlement.

With: If the assumer is an eligible Veteran who intends to occupy the property as their home and has sufficient entitlement, they may agree to substitute their entitlement for the seller’s entitlement. The seller would receive a restoration of entitlement.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 Loan
The Veterans Administration offers excellent qualifying standards. VA loans do not use credit scoring in their analysis of the loan. Even if you have experienced some financial difficulties in your life, you may qualify for a VA mortgage loan. 

VA Loans Can Be Refinanced
VA loans have built in features allowing a loan to be refinanced to a lower interest rate without all the criteria normally associated with a conventional loan. This is called an Interest Rate Reduction Loan or (IRRRL); 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.