VA Loans are easier than you think, with help from Your HomeOwnership Team!
Often, VA Loans require NO down payment and have low interest rates!
Your HomeOwnership Team is approved for automatic and LAPP processing of VA loans, so we can close your loan without waiting for VA to approve your credit application. Our firm will request your Certificate of Eligibility, and once you have selected your new home, we will order your VA Appraisal.
While the appraisal is being done, your Personal Mortgage Loan Originator will be gathering credit and income information. Upon receipt of the VA or LAPP appraised value determination, your loan can be approved and closed without waiting for the VA to review the credit application.
What is a VA Guaranteed Loan?
VA Guaranteed Loans are made to eligible veterans for the purchase of a primary residence. To get a loan, a veteran must apply to a lender. If the loan is approved, VA will guarantee a portion of it to the lenter. This guaranty protect 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. A veteran’s maximum entitlement is $36,000 (or up to a $104,250 for certain loans over $144,000). Lenders will generally loan up to 4 times a veteran’s available entitlement, without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price.
VA Loan Features:
- No down payment, unless required by the lender or the if the purchase price is more than the reasonable value of the property.
- Low interest rates.
- Ability to finance the VA funding fee, plus reduced funding fees with a down payment for at least 5% and exemption for veterans receiving VA compensation.
- Closing costs are comprable with other financing types – and may be lower!
- No mortgage insurance premiums.
- An assumable mortgage.
VA does NOT do the following:
- Guarantee that a home is free of defects. VA guarantees only the loan. It is the veteran’s responsibility to assure that he/she is satisfied with the property being purchased. The VA appraisal is not intended to be an inspection of the property. A veteran should seek expert advice from a qualified residential inspection service, as necessary, BEFORE legally committing to a purchase agreement.
- If you have a home built, the VA cannot compel the builder to correct construction defects, although VA does have the authority to suspend a builder from further participation in the home loan program.
- VA cannot guarantee that a veteran is making a good investment.
- VA cannot provide a veteran with legal services.