| Benefits In VA Home Loans |
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| Written by David G White |
| Friday, 06 August 2010 15:08 |
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When it comes to qualifying for a home mortgage, there are many different types of programs. With the many different home loan programs available, it is important to choose the best program for your particular home mortgage needs.
When it comes to qualifying for a mortgage home loan, there are many different types of programs. With the many different mortgage programs available, it is important to choose the best program for your particular mortgage needs. One of the mortgage programs you can choose from is a VA Home Loan. This type of program is designed for veterans to purchase a primary residence or refinance an existing mortgage home loan. Below are the many benefits to the VA mortgage home loans. No Down Payment A VA home mortgage offers veteran buyers a program with a zero down payment. This means the loan will equal the sales price or the appraised value of the home. The VA mortgage program permits veterans with qualifying income and credit to acquire a home without a down payment towards the sales price of the home. On the other hand, Veterans do need money towards closing costs, which the seller can assist the buyer with. Seller Paid Closing Cost VA home loans allow the seller to contribute up to 4% towards the buyers closing costs. This is exceptionally important in helping a veteran purchase a new property and reducing the funds needed for closing. For example, if a buyer purchases a home for $100,000 the seller can contribute $4000 towards the buyers closing costs. Seller concessions can pay pre-paid items, title fees, mortgage company fees as well as the VA funding fee. The veteran is not allowed to pay for the termite report, which is generally paid by the seller. Lower Rates For many veterans, VA home loans offer the most competitive rates. VA home loan rates are not tied to the credit scores the way conventional home mortgage rates are. For example, if a client has a credit score of 660, on a VA mortgage home loan the rate would be the same if their credit score was 780. However, on a conventional mortgage, the credit score of 660 compared to a 780 would see a higher interest rate. Mortgage Insurance Another big benefit in the VA home mortgage program is there is no Mortgage Insurance. Unlike Conventional mortgages and FHA home mortgage loans, VA mortgages do not charge monthly mortgage insurance. This is an average savings of anywhere between $30 a month to $200 a month, depending on the size of the loan. Home Loan Size VA home mortgages do have a set loan limit. To determine the loan limit in your area, contact your home mortgage professional. For example, the Dallas - Fort Worth area VA loan limits are $417,000 With many different types of mortgage home loans, it is important to understand all your options. For a veteran, VA mortgages are a great way to purchase or refinance a home. It is always important to understand the benefits of each home mortgage loan program that you qualify for and to make sure you are getting the best possible home loan. Consult a home mortgage advisor to see which program is best for you! About the Author: David White is a Sr. Loan Consultant who specializes in VA Home Loans. Start the VA Home Loan process today. Also published at Benefits In VA Home Loans. |
