VA 100% Home Loans
Benefits of a VA Loan
Nothing feels better than putting a Veteran into a home. The men and women who have served our country, I’m sure you will agree are one of the most deserving group of home buyers out there. Veterans, with the assistance of a private lender, have many benefits afforded to them that they may not even be aware of. The VA will stand behind, and guarantee the loan. It is a type of “insurance” for the loan. What does this mean for you? Well, to start the lender can offer more to you because they are “insured” by the VA in case you cannot make your payments, the lender will be paid.
Many Veterans are not aware of how easy it is to apply for and use their benefit in the home loan process.
Advantages of a VA Loan to You
- You do not have to be a First Time Home Buyer
- You can reuse your benefit
- VA loans are assumable, if the person assuming the loan qualifies
- No down payment, as long as the appraised home value is not less than the sales price.
- The VA limits what you can be required to pay in closing costs
- The closing costs MAY be fully paid by the seller
- No penalty for paying your loan off early
- Assistance if you run into difficulty making your payments
- Many states offer resources like property tax reductions to certain Veterans also
The Eligibility Requirements
The amount of service time or commitment, status and character of service are used to determine your eligibility for specific home loans. You will need to get your Certificate of Eligibility from the Department of Veterans Affairs. You can ask your Realtor or you Lender how to go about this. It is a very simple, online process, but you must have your COE to close your home loan.
The VA loan does not dismiss you from having adequate credit, and the ability to make the payments on your mortgage. .
How Much Home Can You Buy
For a Single Family Residence, that you will occupy, the maximum is $424,100 that can be insured by the VA. In most areas of our country, that can buy you a lot of house! You will still go through the customary appraisal process, inspections and anything required by the private lender.
Your loan to value ratios (LTV) are still considered a determining factor on how much home you can be approved for.
Mike Anderson, CRMS and Vice President of AMERICA’S MORTGAGE RESOURCE in Baton Rouge, LA has put together this video that is a valuable watch for anyone who is a Veteran, Spouse of a Veteran, Realtor or Lender, that can help explain the process.