Our customers at VA Mortgage Center.com typically have many questions about the benefits they are entitled to use toward purchasing a home through the VA. OurVeteran Loan Specialists are compiling an ongoing list of helpful answers to a wide variety of questions that you may have concerning your pending home purchase and your benefits as a Veteran. If you have further questions, please call our office at 800-405-6682.
Conventional mortgage rates aren't necessarily lower than VA rates. Once approved for a VA Loan, the Veteran or active duty service person is eligible for the best rates regardless of score or credit history. VA rates are comparable to conventional rates where the borrower has near perfect credit and 20% to put down, only with a VA Loan the borrower can have less than perfect credit and no money down. Get started with your VA Loan today by contacting a VA Loan Specialist.
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In most cases the answer is no. If you are purchasing a home with a conventional loan, the contract can be structured so the seller will pay up to 3% of the loan amount towards the borrower's closing costs. With a VA Loan, you can have the seller pay as much as 6% of the borrower's closing costs. If you are refinancing your home loan, however, you will be responsible for all of your costs unless you have enough equity in your home to roll the costs into your new loan.
You are guaranteed for a VA Mortgage once qualification is complete. The lender will make sure you are able to support the mortgage payment for the home or sales price you have selected. You must still qualify based on his/her income, assets, and previous 12 months of credit history. Credit history does not mean credit score. It means the borrower will need a clean credit record for the past year.
Yes, it is still possible to qualify for a VA Loan. Most VA loan lenders will be looking for a credit score around 620 or higher. A veteran, who was turned down for a conventional loan because their credit score was too low, might be able to qualify for a VA Loan with the same score. This is all dependent on the applicant's financial background and there is no guarantee of approval.
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The maximum amount you can borrow for a VA Loan will depend on the loan limit for your county. For most counties, that VA Loan limit is $417,000. However there are some counties with higher property values where the VA Loan limit is $1,094,625. Just remember, even if you are eligible for a VA Loan, you still have to qualify for the requested loan amount. This means that you may not be approved for the entire maximum loan amount even if you are eligible for a VA Loan. If you want to purchase a home that is selling for more than the maximum VA Loan amount, you would need to come up with the additional money in the form of a down payment.
One of the great benefits of using a VA Loan is that you can take out the loan with no money down, up to the VA's maximum loan amount for your county, which is anywhere from $417,000 in most counties up to $1,094,625. If you are seeking to purchase a house above this limit, a down payment will be required to close the gap. In many cases, you will not have to pay any out-of-pocket closing costs. If the loan and sales contract are set up correctly, you can basically receive a home loan for 100% of the sales price and have the seller cover all of your closing costs.
The VA funding fee is what the VA charges to guarantee the loan. It is not a fee that has to be paid at closing. This fee is simply added to your base loan amount and is paid over the life of the loan. This fee basically takes the place of the mortgage insurance that you would normally find on a conventional loan. Even though the VA charges this fee, you will find that it is much, much cheaper over time than mortgage insurance.
One of the great benefits of a VA Loan is that it enables the borrower to take out up to 100% of the home's appraised value ($417,000 to $1,094,625) without having to pay mortgage insurance. Instead, the VA charges a funding fee that is much less expensive than mortgage insurance and is packaged into your total loan amount.
If you have questions, or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA Mortgage Specialist online or call 800-405-6682.