VA Loans

 

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home.  A VA loan can be a very good loan if you're willing to jump through a few extra hoops along the way and can take as much as 45 to 60 days. VA loans provide 100% financing without any PMI or MIP, but they do however, require a funding fee, upfront. The funding fee is 2.2% of the loan amount for someone using their benefits for the first time, and then goes up to use your VA mortgage benefits after that. Call us, and we can discuss your eligibility and the exact amount of the funding fee. Seller's may sometimes shy away from buyers with VA loans, due the closing costs that they may have to pay for the veteran.

 

Other benefits of a VA loan include:

• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

 

The VA funding fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

 

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

 

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be applied for by the lender and may take anywhere from 5 days to 45 days to get. The traditional green form is no longer used. We will need your DD-214 to process the request.