I'm back. Aren't you glad? After taking a couple days off to rest and regroup in Nashville, Tennessee I have returned to the spring housing rush. As I had anticipated, the moment the snow went away the phones began ringing. Today's topic is the VA loan- a product that is shamefully underused as many lenders talk veterans into other loan products, erroneously thinking that the VA loan is in some way difficult to close or they simply don't have or understand the product.
I will state here and now, that other than in a very few specific circumstances, there is no better loan for a veteran than a VA loan. The VA loan offers the following benefits to the vet:
- No down payment required
-The seller can pay all closing costs
-A Gift can be used for any closing costs the veteran elects to pay
-The veteran can refinance the loan without requalifying
-Credit requirements aren't as stringent as many loans
-A disabled veteran is exempt from the upfront funding fee
-No monthly mortgage insurance is required
I have had veterans call who mistakenly think that the only qualification is being a veteran-but that isn't true. As with any loan the borrower must show ability to repay the loan by being employed. They also must show that they are able to handle credit so there are credit score requirements that very from lender to lender -typically 620 is the lowest eligible credit score for VA loans.
The loan does have some property condition requirements-but those are requirements that most borrowers would want in their home anyway. The include 100 amp electrical service, 5 years life in the roof, a furnace and air conditoner that work when turned on, no standing water in the crawl space or basement, no broker window-normal items. The VA loan allows you to have a barn on the property or up to 10 acres of land. You can also build a new home using VA as the end loan. In general the interest rate on the VA loan is lower than its conventional counter parts. The
The loan is open to all active duty members, honorably discharged veterans, members of the reserves and the national guard.
Do not let someone talk you out of this one-check it out before you consider any other type of financing.
www.sodahead.com
No comments:
Post a Comment