Why Use a VA Mortgage?
Because you have earned the right!
The program was developed to show the gratitude of a grateful nation and as a token of thanks for your service. It has been designed to afford you the opportunity to purchase a home without the need for a down payment and with the security found in knowing that the program guidelines are specific and designed to protect the veteran and their family.
Team Barber would be honored to help you become a homeowner. Whether you are a veteran or an active duty service member, you can qualify for this program. If you are a disabled veteran, you likely qualify for additional benefits such as the reduction or elimination of the VA funding fee on your home loan. This benefit is not just for the Army, Navy, Air Force and Marines. It can also be used by Reservists and National Guardsmen as well as eligible surviving spouses.
Benefits of VA Loans
There are many benefits to choosing a VA Mortgage. The VA Mortgage requires no down payment on loans up to $424,100. There is no required monthly Mortgage Insurance and it is also much easier to qualify for than a conventional loan. Finally, many VA Loans are assumable and all VA Loans can be refinanced.
Zero Money Down For Up to $424,100
There is no down payment required for a VA Mortgage Loan for up to $424,100. This means that if the seller agrees to pay the closing costs, you may be able to purchase the property with zero net out of pocket costs. The loan and sales contract may be configured so that your VA Home Loan covers 100% of the selling price and the seller covers the closing costs.
Buying a home that costs more than $424,100? The VA will insure everything up to $424,100 and 75% of the amount that exceeds that threshold, meaning your down payment is only 25% of the amount that is greater than $424,100.
The VA Funding Fee
The VA generally assesses a Funding Fee to all VA loans that falls between .5% and 3.3%. That fee is added to the amount of the loan so that it can be paid over the duration of the VA home mortgage loan as part of your monthly installment. The VA Funding Fee replaces the higher priced monthly mortgage insurance, which is required when you get a conventional home loan. If you are a disabled Veteran with a 10% or greater rating or surviving spouse, you do not have to pay this funding fee in order to obtain your VA loan.
Qualifying for a VA Mortgage Loan
The VA offers flexible qualifying standards. Credit scores are not used in the same fashion as conventional loans which can be very helpful for those who have experienced temporary financial hardships. If you have maintained a good payment record over the past year, you may still qualify for a VA loan. Team Barber is available to walk you through that process in order to ensure that you get the best possible advice regarding your options and how to proceed. Our goal is to guide you through the process and work with you to obtain your new home with the very best possible loan terms.
VA Mortgage Loans may be refinanced
VA loans have built in features that allow a loan to be refinanced in the event that the mortgage market has experienced a drop in interest rates by leveraging something called an interest rate reduction loan. Known as an IRRL it provides an opportunity to lower your interest rate without much of the paperwork of a typical refinance.
With this option, the veteran can secure a lower interest rate without an appraisal or income and asset verification. In addition, you can roll the costs of the transaction into your loan so that there are no out of pocket costs.
Another advantage to the VA mortgage is that the veteran has the ability to refinance their mortgage and leverage up to 100% of the equity based on the homes appraised value. There is currently no other loan that provides that option and most cap at or below 85%.