VA Loans Are Still 100%

If you are looking to purchase a home with no money down, you're in luck if you are a qualified Veteran. VA mortgage loans can be guaranteed with no money down in some cases up to more than $350 thousand dollars.

Another great advantage is no private mortgage insurance requirement with a VA guaranteed loan.

Refinancing
The VA even offers help for those looking to refinance. Be sure to ask about the interest rate reduction loan, part of something called the Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them.

WHAT IS A VA GUARANTEED LOAN?
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home.

To get a VA loan, a veteran must apply to a lender. If the loan is approved, VA will guarantee a portion of it to the lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms.

There is no maximum VA loan but lenders will generally limit VA loans to $417,000. This is because lenders sell VA loans in the secondary market, which currently places a $417,000 limit on the loans. For loans up to this amount, it is usually possible for qualified veterans to obtain no down payment financing.

VA LOANS OFFER THE FOLLOWING IMPORTANT FEATURES:

• Equal opportunity for all qualified veterans to obtain a VA loan.
• No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Buyer informed of reasonable value.
• Negotiable interest rate.
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty.
• For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
• VA assistance to veteran borrowers in default due to temporary financial difficulty.

Your lender and local VA rep can give you all the details you'll need to take full advantage of your VA home loan benefits.

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

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