Benefits of a VA Loan:
– VA mortgage loans offer qualifying individuals a reduced or zero cash down-payment.
– VA jumbo mortgage loans offer the lowest down-payment jumbo loans on the market
– Interest rates on VA mortgages are often lower than those for conventional loans. Especially in situations where the borrower has a lower credit score.
– VA mortgage loans do not require monthly mortgage insurance. All other loans with a loan amount greater than 80% of the value of the property require mortgage insurance.
– Refinance without an appraisal up to 100% of the loan amount or more is possible.
– Cash-out refinances up to 85% loan-to-value.
– VA mortgage loans can be assumable.
– No prepayment penalty.
– Seller contributions to your closing costs of up to 6% of the purchase price are allowed.
What is a VA Loan?
A VA mortgage loan is a specific home loan that is sponsored by United States Department of Veterans Affairs (VA). VA loans are guaranteed from loss to the lender (not the Borrower) in case of a default by the borrower. This guarantee makes a VA loan an attractive option for lenders. More importantly for you, VA loans normally have a very low interest rate.
Who is eligible for a VA loan?
In addition to United States military veterans, there are many other classes of military personnel who are eligible to apply for a VA loan. Eligible borrowers include active duty servicepersons, those in the reserve, surviving spouses of veterans, members of the National Guard, cadets at the US Military, Coast Guard or Air Force Academy, midshipmen at the US Naval Academy and officers of the National Oceanic and Atmospheric Administration.
What type of house can I buy with a VA Loan?
A VA Loan can be used to purchase a single family detached house, condominium, manufactured home, duplex, triplex or fourplex and a new construction home.
Can I use a VA loan to purchase a rental property?
No, it must be for a primary residence only. However you can use a VA loan to refinance a home you once occupied as your primary residence that is now a rental.
What documentation is necessary to evidence my eligibility to qualify for a VA loan?
Veterans and other that are eligible will have to produce a Certificate of Eligibility (COE). Contact duPont Mortgage for assistance in obtaining your COE.
I have less than perfect credit. Can I still get a VA Loan?
Yes, you can get a VA loan with less than perfect credit. This is another benefit of qualifying for a VA loan. Credit score requirements for VA loans are often much lower than the credit score requirements for typical loan products on the market.
How much down payment do I need?
A VA loan may finance up to 100% of the purchase price of the home and unlike an FHA loan, you won’t be required to pay month mortgage insurance.