Here are 5 Things You or Your Client Needs to Know About VA Home Loans
They are guaranteed by the government
A VA Loan is a home loan that is guaranteed to Veterans by the United States Department of Veteran Affairs.As part of a program to help our veterans become homeowners, the Department of Veteran Affairs stands behind VA loans and guarantees that a portion of the loan will be repaid to the lender should you be unable to make your mortgage payments.
The Veteran must obtain a Certificate of Eligibility
The COE verifies, to the lender, that you are eligible for a VA-backed loan. While the COE proves eligibility, you must also qualify for the loan with a VA approved lender to obtain the loan. When you talk with a Mortgage Loan Originator at Morgan Financial, they can help you with this process.
There is no down payment
Most loans require at least a small down payment to buy a home, however VA loans are an exception to this rule. VA loans allow for 100 percent financing of the home’s purchase price, which means NO down payment is required for loans that are within the conforming limit (484,350 as of January 1st 2019), given the borrower has eligibility (determined by the VA) and qualifies for the loan.
There is no private mortgage insurance
Mortgage insurance is typically for buyers who put less than 20% down on their home. This protects the lender should the buyer default on their loan for any given reason. However, VA loans do not require mortgage insurance which makes VA loans incredibly affordable over time.
VA loans are assumable
VA loans can be assumed by other veterans, as well as by non-veterans. This means that VA Loans can be transferred to the next homebuyer should they qualify. This adds significant value to a home, especially in a rising-rate market.There is a process for this, and the assumable loan must meet guidelines, and the assumption must go through the current servicer of the loan.
As a Veteran Owned, Veteran Operated and Veteran Focused company, we truly value working hard to get Veterans into the home of their dreams If you or your client is looking to explore their VA Home Loan eligibility this summer, look no further than Morgan Financial! Give us a call today or visit the rest of our website to learn more!