Home ownership is a dream shared by many people, but very few get to live it. This is particularly true for those either serving the military or those who served in the past. Summerlin Mortgage is dedicated to helping veterans or their surviving spouses acquire decent homes. We help our members by streamlining the application process, putting together all the documentation required and handling all the legal issues to make your home ownership process hustle free.
What is a VA Mortgage Loan?
Since its inception in 1944, the VA loan has helped more than 20 million veterans to own decent homes. The mortgage loan is provided by private lenders like banks and guaranteed by the Department of Veteran Affairs hence the name VA home loan. Due to this unique feature, borrowers get to enjoy unique advantages over traditional mortgages such as:
- No initial deposit required. A traditional mortgage from commercial banks requires up to 20% deposit before the mortgage is approved.
- No insurance is required. Since the government guarantees the mortgage, you are not required to obtain a private insurance for the mortgage, unlike traditional mortgages.
- Ridiculously low-interest rate as compared to private mortgages that charge up to 20% interest rate. Remember the higher the interest rate, the more you are required to repay making your home more expensive.
- Easy to qualify. The traditional mortgage requires you to prove ability to repay the loan before being approved. This requires a critical analysis of your credit report, and many Veterans may fail to meet these qualifications hence being denied the mortgage.
- No maximum amount. As long as you meet the qualification requirements, you can apply for any amount.
Who qualifies for a VA loan?
Although the primary objective for this mortgage is to help all military personnel, some eligibility requirements can restrict some members from qualifying. Thus, before approval, you are required to obtain a Certificate of Eligibility or (COE). Those who qualify to apply for a VA loan can either be Veterans, Those serving actively in the service, members of National Guard or Reservist or the spouses of the above. CEO or Certificate of Eligibility is prepared to base on length service, Veteran’s commitment to service, duty status and Veterans character during service. This implies that dismissal from service due to dishonorable character automatically disqualifies one from obtaining a CEO and VA loan.
What are the requirements for a VA Loan?
A funding is charged on VA loans to ensure the program keeps running. The borrower pays the funding fee except for those veterans exempted by law like persons living with the disability. The amount of financing fee varies depending on the circumstances of the applicant. For instance, first-time applicants pay a funding fee of 2.5% while second and following candidates pay 3.3% funding fee.
Some allowable expenses can reduce the funding fee amount. Such expenses include child support, alimony payments, retirement income payment and payment for social security. A 1% flat origination fee that applies to most mortgages is not charged for VA loan. Further, you can qualify to claim a discount thus significant reducing your funding fee. Thus, talk to Valley West Mortgage to know all the allowable expenses to avoid paying a higher funding fee than you should.
Get Started Today
If you are a serving veteran or any eligible member, and you feel you meet the requirements outlined above, talk to us today and get started on your journey to home ownership. Call us on (702) 850-2000 and talk to our dedicated team. We are available at any time during typical working hours.