VA loans

Since Wednesday was Veteran's Day, I thought it was a good time to remind people about VA loans.  VA loans are a very popular benefit for those that serve in the military.  The VA loan allows you to purchase a home with zero money down and no monthly mortgage insurance.  The closing costs tend to be lower as there are some fees that can't be charged to the veteran.

A VA loan allows for slightly less stringent underwriting than some conventional or FHA loans.  Interest rates tend to be lower than most conventional loans.  VA loan benefits are available to many veterans of military service, active duty members and in some cases, surviving spouses.  There are minimum service time requirements to qualify for a VA loan.

The VA loan does not have mortgage insurance but does have a VA funding fee that can be financed in your mortgage.  If you have a VA related disability, you may qualify for a reduced funding fee, in some cases, the funding fee will be eliminated. The amount of the funding fee is determined by the type of service (active duty or reserve), the amount you may be putting down on the home and if you have used your VA eligibility before.

The VA also allows you to refinance a current VA loan using a program called an Interest Rate Reduction Refinance Loan (IRRRL).  The IRRRL does not require an appraisal and there are very few verifications required.  You may not get any cash back with this refinance.

If you have served in the military, buying a home with a VA loan is a great way to buy!  You will need to get a VA certificate of eligibility which is usually quick to get online.  With lower interest rates and zero down, a VA loan is definitely a popular way to purchase your new home!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, Inc, An Equal Housing Lender, NMLS#150953 - Email - Website

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Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

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