| VA Loans Offer Many Choices |
| Articles - Mortgage |
|
Were you in the armed forces? Are you looking to buy a house? Veterans will qualify for special loans. Here are some things to consider about VA loans.
Were you in the armed forces? Are you looking to buy a house? Veterans will qualify for special loans. Here are some things to consider about VA loans. Buying or refinancing Aside from the usual home purchase, you can refinance. It you have a current VA loan, you can refinance ninety percent of the value. Streamline refinance This type of refinance can get your VA loan to a lower interest rate. There is little paperwork involved. An appraisal may not be needed. There may not be a credit check. ARM loans You can get an adjustable rate VA loan. The interest will be fixed for a few years. Then it cannot be raised more than five percent. How do these loans work? Service people and ex service people may qualify for a special loan program. The U. S. Government will guarantee part of your home loan. This part is called an entitlement. The entitlement amount cannot exceed $60,000. This is for homes in excess of $144,000. For homes under that amount, the entitlement is $36,000. This amount will vary, according the loan value. An entitlement is not money paid to the veteran. Also do not forget your certificate of eligibility. You get this from the VA office. You lender may be able to get it for you. Advantages to VA mortgages You may not have to come up with down money. Some loan companies may want as much as twenty percent for a conventional loan. This can make a big difference. You will pay no private mortgage insurance. PMI is insurance for the lender. Suppose you put down less than twenty percent down payment. You are a higher risk to the lender. To allow for that, you must pay PMI. This will make your house payment higher. You will pay this until you have paid off twenty percent of your loan. This will make your VA loan cheaper. Maybe you will pay off the loan in a few short years. Most loans will have a prepayment penalty. This will not happen with a VA mortgage. It may be much easier to qualify for your home loan. Lenders will also let the seller pay all of your closing costs. This can get you into a house with virtually no out of pocket expenses. Cons Lenders will often ask the seller to pay your closing costs. Some sellers may not wish to take a cut in their profit. They are under no obligation to pay your closing costs. This may or may not have an effect on your purchase. VA mortgages have a reputation for taking a long time. However this may not be the case today. If the seller is in a hurry, they may pass on your offer. When your loan closes, you will owe a funding fee. It may be two percent or more of your loan amount. You can finance the funding fee in most cases. In closing VA loans can serve many purposes. Take all of the choices into consideration. Talk to a lender to get more details. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If you looking for VA home loans your one stop should be www.myvarefinance.net. All your questions about VA loanswill be answered here. |