If you are active-duty military, a veteran or a surviving military spouse, you may be eligible to get a VA home loan. The VA’s home loan program is … Read More
There are several benefits program under the VA loan program. First, there are loans to help eligible veterans or surviving spouses purchase a home. … Read More
To be eligible for a VA home loan, the veteran must meet certain requirements. To purchase or cash out refinance, the money must be used for a home in … Read More
Get Your VA Approved
VA Loans have been giving active military members and veterans the best mortgage option over other kinds of loans for many years. The program is highly supported by the federal government. A VA loan is positively unique. Why? Because VA Loan rate is substantially lower than any other loans.
The VA Loan Advantage
Because of the very low interest rates, VA loans are sometimes labeled as something that’s too good to be true. The good thing about a VA loan is that when it’s fully understood, veteran buyers can absolutely take advantage of it. Making use of a VA loan in the correct way would mean thousands of dollars of savings. The question is, how do you get the best rates possible?
Where the Low VA Loan Rate Are Coming From
The VA loan is supported by the Federal Government by having it guaranteed by the Department of Veteran Affairs. Because of this guarantee, the loan is protected against any loss. The loss protection in turn makes it possible for mortgage lenders to put up much lower interests for the applicants. The low interest rates from a VA loan easily beats FHA and/or other kinds of loans.
Getting That Favorable VA Loan Rate
Seek for Pre-Approval
Most people find a home to purchase first before applying for a loan. The best first step is actually getting pre-approved first before finding that dream home. This way, the veteran will be able to know exactly how much can be approved for himself and the best possible rates possible. A pre-approved account can also be used as a bargaining advantage as aggressive sellers naturally opt for buyers who are already approved of the VA Loan.
The credit standing of someone applying for any loan can make or break the application. That also applies with VA Loans. It is very essential for a veteran to check his credit score so as know what the lenders would see. The standing of an individual greatly affects the loan decision in general including loan amount to approve, interest rates, and loan maturity.
Best Interest Rates Type
VA Loans usually have two options when it comes to interest rates, the fixed and the adjustable. Both have advantages and disadvantages. Fixed rates are usually for veterans wanting to have the peace of mind in having to pay the same rate all throughout the loan period. Adjustable interest rate is for veterans looking to save from the very beginning. Naturally, the veteran gets to save if he selects type of interest rate that perfectly applies to his situation.
Find Multiple Options
VA loans are becoming quite popular today, pushing numerous lenders to offer it. The interest of these lenders is actually good for veterans as it creates a pool of options for them. Before deciding, be sure, as a veteran, to explore multiple options as interest rates always differ for each lender.
For military servicemen, a military credit union can be a huge help in finding the best possible interest rates. Military credit unions are always pro-servicemen and they fully understand the lives of these people. An organization like that would surely help. Servicemen can ask for input and referrals from these unions.
Where to Find the Best VA Loan Rate
Purchasing a home or simply refinancing the existing one is not at all easy for servicemen and veterans. Tons of effort is required to be able to determine which lender to choose, how to get the best interest rates, where to find good deals, etc. These things become a bit easier when a VA Loan expert comes in to lend a hand. Interest rates of loans are so volatile it needs to be monitored regularly. No one has time for that, except for the VA Loan expert.
A VA Loan expert is able to monitor all factors for the veteran that affects the VA loan. The expert is trained to give calculated and figure-based advice. The expert can help decide to refinance or not. He will help you with all analysis and paperwork.
A VA Loan benefits so many veterans and servicemen today. It has totally changed the playing field of mortgages and home acquisition. Though the real estate landscape continues to soar high when it comes to prices, the interest rates given by a VA loan has enabled veterans and servicemen acquire their properties. The key is finding the best possible interest rate out there.
Buying a home tends to be a daunting process, but it can be easier if you know how the process works and which benefits are applicable to you. If you’re currently in or have been in the military in the past you may qualify for a VA home loan.
These types of loans are guaranteed by the Department of Veterans Affairs (VA). They offer military benefits that the other home buying programs don’t.
Military Benefits of a VA Loan
One of the primary benefits of a VA loan is that it makes it easier to purchase a home. They require a very low or no down payment. This eases the burden of the initial costs of buying a home. Another one of the benefits is that since the VA is guaranteeing parts of the loan you’re not required to carry private mortgage insurance (PMI), which can significantly reduce your monthly payment. PMI ranges from .5 to 1 percent of the total loan. A $100,000 loan with a one percent PMI payment adds an additional $83 to the monthly payment. This could be the difference on whether you can afford to buy the home you’ve had your eye on. VA loans also offer a more streamlined and simple application process to get the process going faster.
You must qualify for the military benefits available through the VA home loan program. You can be retired from the armed forces with at least 90 days of service during a war. Or 181 days during peace times or six years in either the National Guard or Army Reserves or currently in the military with an active duty status. Spouses of service members who passed away due to a disability related to serving or those who died in the line of duty are also eligible for the program. You’ll also need to obtain a certificate of eligibility from the Department of Veteran’s Affairs. This is a process the mortgage originator can guide you on.
The VA has certain requirements about the residence you intend to buy to take advantage of the military benefits. You can use the funds from the loan to purchase a home, build a home or buy a condo if the project is approved by the VA. You can also purchase a fixer-upper and implement energy-saving technology to improve the overall home. Perhaps, you also can buy a manufactured home with a lot. The loan options give you flexibility in finding the home that you want.
Buying a home may be easier than you anticipated, but is easier with help from the VA. Take advantage of the program if you’re eligible and get into the home you’ve been keeping your eye on.
A VA loan is one of the main benefits military veterans can obtain when preparing to purchase a home. A VA loan allows you to purchase a home without a down payment. If you want to have a better understanding of these loans, below are a few important VA loan information you may find helpful.
VA LOAN INFORMATION
What forms of documents do I need if I was discharged a few years ago?
Each person applying for a VA Loan will need to obtain a Certificate of Eligibility with the use of a VA Form 26-1880. The form will require that you use a copy of your DD-214 to prove your service. The loan application will also need your savings, credit, and employment information.
Are Reservists eligible for a VA loan?
Members who have served in the Selected Reserves or National Guard for at least six years are eligible for a VA loan. Men and women who have served less than six years, if they’ve been discharged due to a disability that is related to their service, are also eligible. Those who were activated on or after the date of August 2, 1990, and were discharged or served 90 days, are also eligible for a VA loan.
Can I build a home with a VA loan?
Veterans can build their own home with the use of a VA loan. However, it can be a complicated process to get approved due to various clauses that are in effect. If you’re looking for more FAQs on this topic, you may be able to get a private home construction loan if you negotiate in good faith with the VA Certificate of Eligibility. You can then refinance the completed home with your VA home loan.
VA Loan Information: How can I find out more about inventory of VA foreclosed homes?
VA guaranteed loans are often obtained by The Department of Veterans Affairs and are often marketed through Ocwen Federal Bank FSB, West Palm Beach, Florida, which is a property management company. If you’re interested in purchasing a foreclosure, you can visit the company’s website online to obtain a list of properties that are available in the local area.
Can I buy a home if I’ve already taken advantage of the VA loan before?
One of the most commonly asked questions for those who are looking for VA loan information is if they can purchase a second property if they’ve already used a VA loan in the past. Your entitlement will need to be restored. This requires you to first pay off your previous VA loan. Your entitlement may also be restored if you no longer own the previous home. You’ll be able to reuse the loan for each home purchase that you make in the future.
VA Loan Information: Does the entitlement ever expire?
Your entitlement never expires and can be used immediately if you’re on active duty. When you are released from active duty or are discharged then a new determination of disability will be made.
Many military veterans are unsure whether they can use their VA loan entitlement for home improvements. According to the Veterans Administration, veterans who qualify for the VA Home Loan Guarantee Program can finance certain energy-efficient improvements.
Costs of the improvements may be rolled into their new home loans. The VA does, however, have some restrictions in place. One is regarding the types of improvements. Another is the amount that can be borrowed to complete those improvements.
Energy-Efficient Home Improvements
The VA will allow veterans to finance certain energy-efficient improvements so long as they use the money for those improvements. Here is a short list of energy-efficient improvements veterans are allowed to complete by rolling the costs into their new home loan:
• Solar heating and cooling installation
• Storm door and window installation
• Installing energy-efficient insulation
• Purchasing an energy-efficient furnace
• Any energy-efficient improvements that lower the cost of utilities
Veterans can borrow an additional $6,000 on top of the financing needed to purchase a home to complete energy-efficient home improvements without the need for a separate appraisal. For any improvements that are $3,000 or less, the VA does not require any additional documentation except for the receipts for the improvements.
VA Construction Loans
The VA does offer construction loan programs. These allow veterans to acquire and rehab a home or to construct a new home. Applying for a construction loan is the same as applying for any other VA home loan program. However, many lenders in today’s mortgage market are unwilling to approve construction loans. Although a veterans’ VA loan entitlement guarantees the VA will back the home loan, the lender still must approve the loan. Many veterans are unaware the VA does not provide the actual financing but provides insurance to lenders in the event borrowers default on their mortgages.
VA Home Equity Loans/Cash-Out Refinances
The VA allows veterans who have first liens on their homes to apply for home equity loans or cash-out refinances. If lenders approve the loan, the money can be used for home improvements. Veterans must have first liens on their homes and do not qualify for cash-out refinances if they own their homes outright. According to the VA’s Lender’s Handbook, a veteran may use their VA loan entitlement to refinance any first lien secured against the property, including conventional mortgages. Any loan proceeds beyond the total needed to pay off the first lien may be used by the borrower for any purpose acceptable by the lender.
But what happens when a veteran and his or her spouse divorce but still have a VA loan? This is where good information proves immensely helpful.
A Veterans Administration loan is more commonly known as a VA loan. It is provided as a benefit to veterans of the United States Armed Forces.
Veterans and their spouses may take out a VA loan but the veteran must be listed first on the loan and must be listed first on the title to the home. Only their respective spouse may be on the loan or share title with the veteran. No parent, significant other, fiancée, or anyone other than the spouse is eligible.
Divorce – Who Keeps the VA Loan?
In the event that a veteran and his or her spouse dissolve their marriage, the party awarded the home is typically also awarded the debt associated with it. Sometimes the divorce decree requires that person to refinance the loan and title to the home into his or her own name. If the veteran is the person awarded the home, he or she can obtain a VA refinance through his or her lender. A copy of the decree must be provided so that the ex-spouse can be removed from the title. The ex-spouse will have a document or two that requires signing. This differs from state-to-state.
Purchasing Another Home after Divorce
One question lenders are often asked is “Can I purchase another house utilizing my VA benefit if my ex-spouse kept the house and the VA loan associated with it?” It depends on how much of your entitlement remains from the first VA loan. But the VA does allow two VA loans at the same time. This is known as second-tier entitlement. So long as the veteran’s maximum entitlement is not exceeded with the first loan, the veteran may be able to use VA financing to purchase another home.
Restoring VA Loan Entitlement
If the veteran and ex-spouse sell the marital home, pay off the VA loan, or refinance to a non-VA loan, restoration of the entitlement should happen right away. Then when he or she wants to purchase another home by re-utilizing their VA benefit, they can work with their current lender to make sure the restoration is in place so the veteran can finance their new home.