Saturday, May 7, 2016

Benefits of using your VA loan Benefits.

A VA financing “IS” a loan with a lot of benefits. A VA loan allows you to purchase a house with no money down, but like any other loan if you have money to put down it may lower some of your loan fees.  VA financing allows you to finance up to 100 percent of the value (appraised) of the house.  Most conventional loans require you to put 3 to 20 percent money down on the house on top of any closing costs. VA loans have other benefits:
·        The lenders who service VA loans may allow you to have a higher debt to income ratio under certain circumstances. 
·        There is no private mortgage insurance. This can save you hundreds a month.
·        There are limited closing costs which include a funding fee, which may be paid by the seller. The funding fee is determined by the amount of money you can put down, the number of times you have used your Certificate of Eligibility for Home Loan and your military category.
·        You can pay off the loan early without a penalty.
·        The loan is assumable as long as the other person meets all the qualifications. You may apply for a VA loan two years after a bankruptcy, or sooner in certain circumstances, as long as you worked on getting your credit history back on track.
You do not have to pay the fee if you are a:
·        Veteran receiving VA compensation for a service-connected disability, OR
·        Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
·        Surviving spouse of a Veteran who died in service or from a service-connected disability

If you haven’t filed for your VA disability compensations and you plan to use a VA home loan to buy a home it could cost you thousands of dollars each time you use your benefits.  The percent needed to waive the funding fee is extremely low.

Now that we have discussed the benefits of a VA loan, in the next blog we’ll discuss the misconceptions people have about using a VA loan.  Check back or subscribe to learn more as we explore VA Loans.

Catherine Seybold
Sales Agent
Coldwell Banker Residential Brokerage
Military Relocation Professional
Senior Real Estate Specialist

"The postings on this site are my own and don't necessarily represents Coldwell Banker positions, strategies or opinions."

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