Are You a Veteran? You May Be Eligible for a VA Home Loan

Date October 24, 2016

 alt=To be eligible for a VA-guaranteed loan, you must meet credit and income standards and have a valid Certificate of Eligibility (COE). The home must be for your own personal occupancy. You must have been discharged under conditions other than dishonorable and meet service requirements.

  • 100% Financing available*
  • No mortgage insurance requirement
  • Cash Out Refinance up to 100% Loan To Value*
  • Up Front Funding fee may be financed

VA-GUARANTEED HOME LOANS

VA offers three home loan guaranty programs for Active Duty Service members, Veterans, National Guard members, Reserve members, and certain surviving spouses. There are three loan types:

  • Purchase Loan
  • Streamline Refinance Loan
  • Cash-Out Refinance Loan

Purchase Loan:

A Purchase Loan can help you purchase a home at a competitive interest rate. Generally, you do not have to make a down payment or buy mortgage insurance to obtain a purchase loan.

Streamline Refinance Loan:

With the VA Streamline Refinance Loan (also called the “Interest Rate Reduction Refinance Loan” or IRRRL) you can obtain a lower interest rate by refinancing your existing VA loan. You can also refinance a VA adjustable rate mortgage (ARM) into a fixed rate mortgage.

Cash-Out Refinance Loan:

If you want to cash out your home equity so you can pay other debt, pay for school tuition, or make home improvements, then VA’s Cash-Out Refinance Loan may be an option. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home.

Certificate of Eligibility:

In order to qualify for a VA backed loan you must obtain a Certificate of Eligibility (COE) from VA that verifies you or your spouse’s military service. The easiest way for you to obtain a COE is through www.ebenefits.va.gov. We can assist you in obtaining your Certificate of Eligibility online through the internet based application, WebLGY.

Loan Limits:

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. These loan limits vary by county, since the value of a house depends in part on its location. VA guarantees a maximum of 25% of the VA county loan limit for loans over $144,000. To view VA’s maximum guaranty amount for your property location, check out the current list of county loan limits at www.benefits.va.gov/homeloans.

Funding Fees:

Generally, Veterans using the VA Home Loan Program must pay a funding fee required by law. The funding fee varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. You do not have to pay the funding fee if you are:

  • A Veteran receiving VA compensation for a service-connected disability, OR
  • A Veteran who would be entitled to receive compensation for a service-connected disability if he or she were not receiving receiving retirement or active duty pay OR
  • A surviving spouse of a Veteran who died in service or from a service-connected disability, OR
  • A Veteran rated eligible to receive VA disability compensation based on a predischarge rating and examination, or a rating based on existing medical evidence, such as treatment or service records.

For more information on a VA Loan and other available Mortgage Programs, please contact us online or at 818 993-6328.

 

*Qualifying factors may apply

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