VA Mortgages – What You Need to Know

With Memorial Day recently giving us pause to thank and reflect on those who have, and are, serving our country to protect our freedoms, we wanted to highlight how we can help thank them. Many don’t know, or realize, the benefits that VA Mortgages that are available to our Veterans, including many lenders who don’t offer programs or are unfamiliar with its many benefits. We’re hoping to help enlighten and share the advantages of the programs surrounding VA financing as an option for your next home purchase.

What is VA Financing?

VA Financing is a type of mortgage loan in the US that is guaranteed by the Department of Veteran Affairs (VA). This a program for veterans and military members currently serving in the US military, reservists, and select surviving spouses (if they do not remarry) and can be used to purchase homes.

A few important aspects of VA Mortgages to bring to the forefront:

  • As little as ZERO money required for down payment
  • VA loans technically have NO credit score restrictions – although most lenders will stop at a FICO score of 600
  • Lenders are not allowed to charge Loan Origination Fees to the veteran
  • REALTOR®s are not allowed to charge buyers commissions to the veteran
  • As of Friday, May 31st, the VA rate is a full half a percentage better than conventional loan programs
  • Last, but certainly NOT least; unlike FHA, there is no mortgage insurance charged on a monthly basis

What does that mean for you?

First let’s assume a scenario: you are looking at buying a house for $250,000, and your credit score is 700.

If you are a Veteran, and you have your full eligibility, you can put zero down at closing!

For Conventional financing, most lenders require 5% down payment. This feature keeps $12,500 in your account for that “rainy day” fund. Fixing your furnace, replacing some window coverings, new appliances…etc. Rates, as noted earlier, are also .5% lower for VA financing. On a $250,000 loan, that saves you $1,250/year in interest, or perhaps more importantly, lowers your payment each month by $104.

 

And what about that “no mortgage insurance thing”? If you had a 700 FICO score, and you were looking at Conventional financing, you are looking at an Mortgage Insurance factor in the neighborhood of .6% annualized. If we use this as our factor on $250,000 borrowed, that is an additional $125/month in your pocket, or, $1500 saved annually. In essence, your payment is now cheaper by over $200, and you are sitting on a nice stack of additional liquid cash, for the same house!

 

This incredible benefit available to you, our Veterans, should always be available when it’s time for you to buy. If it’s not then it’s likely that your Loan Officer does not have this product, or, is not comfortable with it from a knowledge and/or experience perspective.

 

Work with a lender who can guide you seamlessly through this product and it’s intricacies, and do so with a smile of gratitude and appreciation for your service.

Words will never be enough as we thank you for your service and helping you navigate this loan program would be just a small measure of us saying thank you again for everything you’ve done.

 

Questions on VA Loan financing or want to see if you qualify? Contact Results Mortgage.

 

 

Results Home Mortgage

President of Results Mortgage As a nearly 20-year mortgage industry veteran and also a Wells Fargo President Club designation recipient, Lance is able to speak from experience. Feel free to reach out directly with any questions on mortgages and lending in Minnesota or Western Wisconsin area. Contact him now! Continue Reading

President of Results Mortgage As a nearly 20-year mortgage industry veteran and also a Wells Fargo President Club designation recipient, Lance is able to speak from experience. Feel free to reach out directly with any questions on mortgages and lending in Minnesota or Western Wisconsin area. Contact him now! Continue Reading

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