VA Loans – A Small Token of Thanks to Those Who Have Served Our Country
The entire team at Dave Financial feels blessed to live in this great nation. As we have often been reminded, the liberties we enjoy in America were earned. They were earned by the men and women that serve or have served in our country’s military. For all their service, we feel blessed to be able to help them with their dream of home ownership through a special loan just for them – the VA Loan.
No Down Payment Required
VA loans are similar to conventional loans in many ways. They can be used to buy homes, or can be used to refinance a home. VA loans offer terms similar to conventional loans, such as 30 Year Mortgages and 15 Year Mortgages. The biggest difference between VA loans and Conventional loans is that VA loans often do not require a down payment. So long as a subject property appraises for its purchase price, a buyer can finance the home’s full amount, up to the local VA loan limits for the area. flag
No Mortgage Insurance
A loan without a down payment of 20% usually requires mortgage insurance. Mortgage insurance protects the lender against loss should the borrower default on the loan. Mortgage insurance is required on other types of loans such as conventional and FHA loans. This can render VA loans much less costly on a monthly basis. FHA mortgage insurance rates are set to increase again above the current 1.25% cap. This means that some FHA borrowers with a $400,000 will soon spend over $5,000 a year in mortgage insurance! This is a huge savings for the VA borrower.
Lately, rates on VA loans have been lower than comparable conventional home loans. This is true for both VA purchase and refinance loans. In some cases, rates are better by almost .5%. To use the same $400,000 loan scenario from above, this will save the borrower almost $100 per month vs. a conventional loan. This allows a VA borrower to buy more home due to a lower debt-to-income ratio.
The IRRRL : A Special Refinance Program For VA Homeowners
VA offers a streamline refinance option called the IRRRL, or the Interest Rate Reduction Refinance Loan. This loan is available for vets and active military that currently have VA loans. This loan is among the easiest refinance programs available today. The IRRRL program requires no appraisal, no income verification, no credit score verification, and no employment verification.
Need Help With A VA Mortgage?
We are honored to serve those who serve our country. If you would like to know how much you can afford, or want to know if a refinance can help, call us anytime!