Since this week was Veteran's Day, I thought it was a great time to talk about VA mortgages. VA home mortgages are one of the two mortgages left that are zero down!
Most veterans qualify for VA loans, especially if you were active duty for at least 181 days and have an honorable discharge. Most VA loans are 30 year fixed rate mortgages. The interest rates are typically similar to FHA loans and are set by lenders, not the VA.
VA loans do have a guarantee fee that varies based on the loan to value and also whether you are active duty or reserve. Also if you have used your VA benefits before, the guarantee fee is typically about 3.3%. That fee can be added to your mortgage. If you have a VA disability, the VA guarantee fee may be lowered and possibly even waived completely. There is not a monthly mortgage insurance, which helps lower your monthly payment!
You can ask the seller to pay closing costs if you need to. They are allowed to pay up to 4% of the purchase price towards your closing costs. There are a couple of fees that the Vet can't pay, but the seller can – for example a commitment fee can't be charged to the Vet, but typically the seller will pay it.
A veteran can qualify for a VA mortgage on their own or with a spouse. However you can't get a VA loan with someone that is not your spouse. If you currently live with another person, they can't be on the mortgage or even help with qualifying.
VA loans can be used for single family homes, townhomes and condos. Condos have to be approved by the VA in order to be eligible.
If you are thinking about buying a home and you have VA eligibility, a VA mortgage is a terrific way to buy. You will need your DD214 and a Certificate of Eligibility. Contact your loan officer or call me and see if a VA mortgage will work for you! Also- thank you for your time and service to our country!!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage and Equity Consultants – Email – Website
