Benefits of a VA loan.
There are some distinct advantages to a VA loan vs. a conventional loan:
Little–to-no down payment required
VA loans do not require a down payment. You may obtain up to 103.3% financing for a home purchase or 20% for a second mortgage and up to $6,000 for energy efficient improvements. For a refinance with a new VA loan, Veterans may borrow up to 100.5% of the loan amount.
No money due at closing
The VA limits closing costs for Veterans, so you can come to the table without a large lump sum payment.
No monthly PMI (private mortgage insurance)
Because VA loans are government backed, you don’t have to pay private mortgage insurance (which is typically required). This allows for larger loans with the same payment.
Since VA loans are government backed, lenders view these loans as safer options for homeowners. As a result, they’re able to offer more competitive interest rates than traditional loan programs.
Finance your funding fee
For VA purchase loans, there is a funding fee (up to 3.3%). This is to ensure that the program can continue for future generations of military personnel and their families, and this fee goes directly to the VA. Your funding fee can be conveniently rolled into the overall loan amount. The fee does not apply for Veterans with service-connected disabilities. To refinance with a new VA loan, there is a 0.5% VA funding fee for an Interest Rate Reduction Refinance Loan (IRRRL).
Easier to qualify
Again, since this is a government loan, lenders have less risk, which means there are fewer restrictions and qualifications to obtain the loan.
Do you qualify for a VA loan?
Service: To be eligible for a VA loan, you have to be currently or formerly on active duty (181 days during peace time or 90 days during war time), or a Guard or Reserve member for at least 6 years, or a surviving military spouse.
Property: The home being financed must be your primary residence.
Paperwork: You’ll need a Certificate of Eligibility from the VA. At Embrace, our Loan Officers are experienced with the VA loan process, and they will obtain an electronic copy of your Certificate of Eligibility using a copy of your DD-214. In addition, standard items such as pay stubs, tax returns, W2s, employment history, bank and investment statements, and documentation of any real estate assets are required.
Put your mortgage concerns at ease.
At Embrace, we appreciate your service to our country and want to give you the highest level of service in return. You’ve certainly earned it. You’ll work with the same knowledgeable Loan Officer from start to finish. Our Loan Officers are all experts in their field, with over 8 years of experience on average, and will help you close your loan in weeks, not months.
You’ll have no application fees and no obligation. Call 800-620-6292 to speak with an Embrace expert today.