VA Loans are an excellent loan option which enable borrowers to purchase property with 100% financing, and more importantly, no mortgage insurance is required. To be eligible, you must be a veteran, active duty, reserve or national guard, or an unmarried surviving spouse of a veteran (see below for a more comprehensive list). VA is one of the few programs today which still allows the borrower to finance 100% of the home's value and purchase with $0 down. If you served in the military, this is one of the ways that we can give back, and thank you for your service!
VA offers two benefits that will substantially lower your monthly payment. First, private mortgage insurance or PMI, is not required. On most loans, mortgage insurance is required if you put less than 20% down, and it is an added monthly expense which has to be paid similar to a home insurance policy or flood insurance policy. With VA, this is not required. required for conventional loans where the borrower finances more than 80% of the home's value. You'll also be able to take advantage of low, competitive rates.
The qualification guidelines are less stringent for VA Loans. The calculation for qualifying for a VA loan considers residual income, or the income left over after all your monthly debt -- this is the only loan program that does this, and it's logical and allows for borrowers to often qualify for more loan that through conventional or FHA channels. VA is a fixed rate mortgage only, 30 and 15 year.
To be eligible for a VA loan, there are several criteria that you must fall within, and we would be happy to go over these with you. Please call, text, or email us for more info.
