All About VA Home Loans From VALoanMortgages.com
Are you a Veteran or servicemember whose wondering about the VA Home Loans program? If you aren’t familiar with this amazing service benefit, you should be! The VA Home Loans program can get you into your own home for far less than you’d pay with a conventional or FHA mortgage.
Understanding The VA Home Loans Program
The VA Home Loans program is a way to help U.S. servicemen and women and Veterans purchase their own home for less. VA Home Loans are not available to the general public – only to current and former members of the U.S. military. It’s a service benefit that you’ve already earned thanks to your service to our country!
VA Home Loans are mortgage loans that are backed by the federal government and guaranteed by the Department of Veterans Affairs. Although VA Home Loans are guaranteed by the government, they are obtained through private lenders and lending institutions like VALoanMortgages.com. That means you don’t have to work directly with the VA system to obtain VA Home Loans. Instead, you can find a qualified lender who will be able to help you apply for VA Home Loans and manage the process on your behalf, just like you would with a traditional mortgage.
In fact, other than the exceptional mortgage terms, VA Home Loans look and function just like any other home loan. You can get them for 15 or 30-year terms. You’ll receive a monthly mortgage bill that will be paid to the lending institution, you can pay the loan off early if you’re able to, you can sell the home at any time and VA Home Loans can be refinanced at any time.
Benefits Of VA Home Loans
So, if VA Home Loans are so similar to traditional mortgage loans, why should you consider VA Home Loans over another type of loan? Simple – to save money and make the money you do have available go farther!
The benefits of VA Home Loans are numerous:
- Low Interest Rates. With VA Home Loans you’ll be eligible for the lowest interest rates around. Market pricing determines interest rates and they can vary from day-to-day, but no matter what VA Home Loans rates will be the lowest around, typically even lower than FHA rates.
- No Down Payment Requirements. VA Home Loans do not require a downpayment like other mortgage loans do. Some loans require as much as 20% down. On a $200,000 home that is $40,000 that you’d have to pay out-of-pocket. This number is far out of reach for many homebuyers, but borrowers who qualify for VA Home Loans don’t have to worry about that because VA Home Loans can be obtained with ZERO down. This makes it easier for Veterans and enlisted personnel to purchase a home with very little savings.
- No Monthly Primary Mortgage Insurance (PMI). Another money-saving aspect of VA Home Loans is the lack of PMI payments. PMI is protection for the mortgage lender in case you were to default on your loan. It is paid every month as part of the mortgage payment. Many lenders will require borrowers to purchase PMI if they have put less than 20% down on their home purchase. VA Home Loans waive the down payment requirements and, likewise, the PMI requirements. Lenders are willing to accept this risk because VA Home Loans are backed by the federal government.
- VA Home Loans Can Be Used For Refinancing. If you already own a home you can still take advantage of the great terms VA Home Loans offer. Cash-out refinancing and streamline refinancing options are available with VA Home Loans.
- Qualify For Larger Amounts. VA Home Loans allow borrowers to qualify for larger mortgage amounts. The VA insures mortgages for up to 41% of their gross monthly income whereas typical mortgages will only insure for up to 28% of the borrower’s gross monthly income. In general, VA Home Loans are available for up to $417,000, but that amount is higher in certain counties. Talk to one of our loan specialists to determine the loan limit in your area.
Determining Eligibility For VA Home Loans
Figuring out if you’re eligible for the VA Home Loans program is fairly straightforward. First of all the home must be used as your primary residence. That means, you can’t use a VA loan for a vacation or second home. Otherwise you must meet one of the other criteria:
- Veteran with 90 days or more of active duty service during wartime and 181 days of service during peacetime.
- Active Duty service for at least 90 continuous days.
- National Guard or Reservist who served for 90 days of active service in the Gulf War or six years of service and were discharged honorably.
- Surviving Spouse (who has not remarried) of a Veteran who died during service or as a result of service-related injuries.
To learn more about VA Home Loans, discuss your eligibility requirements or apply for VA Home Loans, contact VALoanMortgages.com at (866) 216-3577, contact us online or start your application using our online form.