The 10 Biggest Benefits Of A VA Loan, Plus Today’s VA Mortgage Rates

Multiple loan "programs" exist for today's home buyers. Some programs are backed by the U.S. government and some are backed by individual banks. All, however, can help you meet your mortgage loan needs. 

One loan type stands apart, though, for its combination of low rates, aggressive underwriting and secondary benefits to borrowers.

That program is the VA loan. Click here for VA mortgage rates.

VA Loan : Better Than FHA And Conventional?

Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost. The VA loan asks for no down payment, requires no mortgage insurance, allows flexible guidelines for qualification among its many other advantages.

Here's an overview of the 10 biggest benefits of a VA home loan.

1. No Downpayment

Most home loan programs require you to make at least a small downpayment to buy a home. The VA home loan is an exception. Rather than paying 5, 10, 20 percent or more of the home's purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.

2. No Mortgage Insurance

Typically, lenders require you to pay for mortgage insurance if you make a downpayment that's less than 20 percent. This insurance, referred to as private mortgage insurance (PMI) for a conventional loan or a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan. But a VA loan neither a no down paymentnor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time.

3. Government Guarantee

There's a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you're unable to make monthly payments for whatever reason. This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.

4. Ability To Shop and Compare

VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans aren't set by the VA itself. Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders -- each of which sets its own VA loan rates and fees. This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.

5. No Prepayment Penalty

A VA loan won't restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home. Furthermore, there are no restrictions regarding a refinance of your VA loan. You can refinance your existing VA loan into another VA loan via the agency's Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time.

6. Loan Options

A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties. Or it can be used to refinance your existing mortgage, make repairs or improvement to your home or even make your home more energy efficient. The choices are yours. A VA-approved lender can help you decide.

7. Easy To Qualify

Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty. The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.

8. Lower Closing Costs

The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.

9. Funding Fee Flexibility

VA loans require a "funding fee", an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don't need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing. And not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.

10. Assumable Financing

Most VA loans are "assumable," which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible. Assumable loans can be a huge benefit when you sell your home -- especially in a rising mortgage rate environment. If your home loan has today's low rate and market rates rise in the future, the assumption features of your VA become even more valuable.

Click here for VA mortgage rates.

Compare VA Mortgage Rates 

The eligibility list for a VA loan is long. Classes and classes of servicepersons and their families are eligible.

Whether you're an active-duty serviceperson, a veteran, a member of the National Guard, a Reservist or surviving spouse of a veteran; or if you're a cadet at the U.S. Military, Air Force or Coast Guard Academy, midshipman at the U.S. Naval Academy or officer at the National Oceanic & Atmospheric Administration, you may be eligible for a VA loan -- plus all the benefits that come with it.

See today's VA mortgage rates and compare your VA offers.

Contact The Mortgage Mark with any questions!   www.themortgagemark.com   Mark@themortgagemark.com 

Can You Get A VA Loan For A Condo?” And Other VA Property-Type Questions

Can You Get A VA Loan For A Condo?” And Other VA Property-Type Questions

In today's housing market, there are tens of "home types" from which a buyer can choose. Among the most common are condos, single-family homes, and multi-unit properties. The list of "most obscure" includes geodomes, log cabins, and homes carved into a mountain.

For military borrowers, it's important to know which homes are lendable via the VA loan program. Not all property types will secure a bank's final VA approval.

The Department of Veterans Affairs is explicit regarding allowable property types. Here's what you need to know.

Skip to today's live VA mortgage rates.

VA Loans : Most Home Types Eligible For Financing

VA loans are special, government-backed mortgages, first available via the G.I. Bill in 1944. VA loans were created to help military veterans transition from war and into homeownership, among other reasons.

Nearly 80 years later, the program still offers subsidized mortgage rates and reduced underwriting standards, which has resulted in more than 20 million total VA loan closings.

VA loans can be applied to many specific home types. For example, a VA loan can be used to:

• Buy an existing house or condo
• Buy a house or condo that's being newly built
• Buy a duplex, triplex or four-unit property

VA loans can also be used to buy a manufactured home or to buy a lot for a manufactured home. However, in order to be VA-eligible, a manufactured home, whether existing or new, must be classified and taxed as real estate, specifically. It also must be affixed to a permanent foundation and comply with your local building codes and zoning laws.

A manufactured home can be VA-eligible even if the home or foundation isn't ready yet.

Furthermore, for the above property types, VA loans can be used to make home repairs or improvements, and to make energy-efficiency improvements to a home.

To be VA-eligible, homes for purchase or refinance must be located in the United States or a U.S. territory or possession, such as Puerto Rico, Guam or the U.S. Virgin Islands. Properties in foreign countries aren't eligible for VA loan approval.

Click to see today's live VA mortgage rates.

Occupancy Rules For VA Loans

Like all mortgage types, VA loans carry occupancy standards.

For example, if you want to buy a home with a VA loan, you'll have to certify that you -- or your spouse -- will occupy the home as your primary personal residence. This means that you intend to live in the home.

If you're buying a 2-unit, 3-unit or 4-unit property, you will need to live in one of the two, three or four units.

The VA occupancy requirement does not mean you'll have to live in the home forever, or even for as long as you keep your VA loan. It's enough that you intend to occupy the home, move in after your purchase closing settlement, and continue to live in the home for some period of time.

The exception to the VA's occupancy rules is for refinances via the Interest Rate Reduction Refinance Loan (IRRRL). Also known as the VA Streamline Refinance, the IRRRL program allows for vacation homes and investment properties. The only VA occupancy requirement is that you did live in the refinanced home at some time in the past.

Click to see today's live VA mortgage rates.

VA Loan Appraisals And Inspections

Lastly, for all VA-approved properties, a specific VA home appraisal is required.

As part of the VA approval process, a property appraiser will tour the subject home's interior and exterior, then compile a valuation report known as an appraisal. The appraisal is submitted directly to your lender who can then forward the appraisal to you upon request.

The property's appraised value is important because it's used as collateral for your loan.

As part of the appraisal process, an appraiser may identify major faults within the home and recommend that repairs be made. A "major fault" includes a broken roof, faulty electric wiring, or any other defect which may adversely affect the value of the home.

Minor repairs such as "a missing screen window" are not part of the appraisal process and, because your home appraisal is not a substitute for a home inspection, it's recommended that you commission a home inspection from a reliable home inspector.

The home inspector's report will address your home's major components, such as the plumbing, heating and cooling, and electrical systems and the roof. Your REALTOR® can typically make a home inspection referral, if you don't know who's best for the job.

Get Today's VA Mortgage Rates

VA loans offer a lot of benefits as compared to conventional financing and FHA-backed loans. Via the VA, there's no down payment required, there's never any mortgage insurance to pay and underwriters allow for flexible qualification standards.

In addition, because they're government-subsidized, VA loans can offer lower interest rates and closing costs than other loan types. If you're eligible for a VA loan, it's worth considering for any specific "home type".

Click here for VA mortgage rates as of  today.

Contact The Mortgage Mark with any questions!  www.themortgagemark.com   mark@themortgagemark.com