Why a VA Loan?
It's simple ... Lower Rates. Lower Payments. $0 Down.
Find out why thousands of people are using their VA Loan benefit every single month. Allow us to help you lower your monthly payment, lower your interest rate and purchase a home with $0 down.
Purchase with $0 Down
A VA Loan is one of the only loan programs that still allows the borrower to finance 100% of the home's value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In many cases they require 5-20% down, putting home ownership out of reach for many prospective buyers.
Refinance to Lower Your Monthly Payment
A VA Loan offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.
Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment as illustrated in the chart below...
| Loan Amount |
1.0% Rate Reduction |
PMI Savings |
Est. Monthly Savings |
| $150,000 |
$94 |
$115 |
$209 |
| $250,000 |
$156 |
$191 |
$347 |
| $350,000 |
$220 |
$268 |
$488 |
| $450,000 |
$282 |
$345 |
$627 |
*Estimates based the borrower putting $0 down with a 1.0% interest rate deduction. Ask about our "VA Streamline Refinance" that is much simpler and quicker than a typical refinance. No income and asset verifications needed!
Getting Qualified is Easier
The qualification guidelines are less stringent for VA Loans. Because the loan is backed by the government, banks have relaxed the often strict lending rules for VA Loan applicants making them easier to obtain.
Other benefits of a VA loan include:
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Negotiable interest rate.
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Closing costs comparable – and sometimes lower - than other financing types.
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No private mortgage insurance requirement.
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Right to prepay loan without penalties
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Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
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Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.
A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.
Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan and we gladly help obtain these for our Military clients.
Complete VA guidelines here: http://www.benefits.va.gov/homeloans/
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