Will you be PCSing to a new military community and looking to buy a home? Or, are you currently serving or have served in the U.S. military and curious about the VA Home Loan Benefit? Let's dig in and learn more about this incredible benefit that you have earned.
Why would a VA Home Loan be the best choice for you?
VA loans offer many advantages for current or former service members. Whether you are looking to buy a home or refinance, you can do so without many of the expenses or restrictions that apply to people seeking conventional loans. This program is in place specifically for your benefit, so why not take advantage of it?
Let's take a look at some of the highlights of your well-earned VA Home Loan benefit:
- 100% financing--no down payment necessary--VA Home Loans are government insured therefore it eliminates the need for Private Mortgage Insurance (PMI), a common expense for other loans when less than 20% is put down. However, putting some money down may help lower your VA Funding Fee, more below.
- Low Interest Rates--VA loans typically have lower interest rates than conventional loans.
- Flexible Underwriting Guidelines--Lower credit often accepted, VA-backed loans are far less stringent than conventional loans when it comes to evaluating your qualifications as a borrower, such as credit. That even applies to past events such as bankruptcies and foreclosures.
- Re-Usability--The VA loan program is reusable, and you can have more than one VA loan at a time, under certain conditions. Further, as long as you pay off the loan each time, you can use the benefits of a VA loan over and over. Even if you have had a problem such as a foreclosure or currently have a VA loan, you may be able to get another one. Someone else can even take on the loan if they are deemed eligible by the VA.
- No Pre-Payment Penalty--Many loan types have a penalty for paying off a mortgage before it matures. VA loans have no such penalty, which means you can pay it off early. That gives you more flexibility if you are looking to refinance or pursue other options down the road.
- Loan Limits--Eligible veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. If you do have remaining entitlement, you do have a home loan limit based on the county loan limit where you live.
- VA Funding Fee--It is important to note that there is a VA Funding Fee. The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. There are a couple situations where one may be exempt from paying the VA Funding Fee.
For all loans, the VA funding fee is based on these factors:
- The type of loan you get, and
- The total amount of your loan. The funding fee is calculated as a percentage of your total loan amount.
Depending on your loan type, lenders may also base your fee on these factors:
- Whether it’s your first time, or a subsequent time, using a VA-backed or VA direct home loan, and
- Your down payment amount
View VA Funding Fee Rates here>> https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs
This flexibility makes it a powerful tool for buying, building, or refinancing a home. These benefits truly showcase the program's aim to thank service members for their sacrifices and to make homeownership accessible and affordable to those who have served our nation.
Buying a home and want to explore using your VA Home Loan? Next Steps:
I would be happy to chat and walk you through the process in determining if using a VA Home Loan is the best choice for you. There are instances when other mortgage products may be more suitable.
Are you in the process of PCSing this summer and undecided between renting or buying?
I can help run the numbers to see what makes the most financial sense for you and your family. With the escalating cost of rent and BAH often falling short, purchasing may be your most financially viable decision.
I highly recommend getting your pre-approval knocked out as soon as possible, even if you haven't found your home as of yet. This way you are ready to go in a competitive market when the time comes to put in that offer.
ABOUT ME
I am a licensed Mortgage Loan Originator with OVM with AnnieMac Home Mortgage. I am licensed in the state of Virginia. If you are moving to Virginia or already here, I would love to assist you in purchasing your home.
We have been fortunate to live in Virginia for many years and I love helping military families moving to the area. I founded MilitaryBridge back in 2012 to provide a resource for military members and their families find best businesses, services, military discounts, and resources in local communities.
If you're relocating to another state, I can connect you with another MLO specializing in military moves. Simply send me an email, give me a call, or drop a message via social media, and I'll find the perfect person for your needs.
On a personal note, my husband retired from the military after 28 years of service. We both share a passion for assisting fellow military members and their families in achieving their homeownership dreams. If we can help in any way, don't hesitate to reach out. And if you know someone seeking loan assistance, feel free to share my information.
Happy House Hunting :)
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