The VA mortgage loan was created to assist the US veterans be more likely to qualify for a loan. The guidelines change constantly, so in order to figure out if you are eligible for sure, you should consult an industry professional. There are some general rules however and if you meet one of the following scenarios, you are probably eligible: Served for ninety consecutive days of active duty during war time; served one hundred eighty one days of active duty during peace time; have more than six yrs service in the National Guard or Reserve; are the spouse of a service member who died in the line of duty or as a result of a disability that was service related.
First, you may utilize your VA mortgage loan to purchase a home, in this scenario you may sometimes make a home purchase with 100 percent financing. For example, let's say you have your dream home in your crosshairs, but the home appraised for three hundred thousand dollars. With the VA loan, you may be able to take out a loan for the full amount, and not have any down payment. You would still have closing costs associated, but with a conventional loan you would be required, in most scenarios to have at least five percent down, with a FHA loan about three percent down, and you will have mortgage insurance on top of it! With a VA Loan and as of this writing, there is no mortgage insurance required.
After you have obtained a VA mortgage loan, you can refinance it if you want to make changes. For example, if interest rates have dropped since getting the loan you may refinance it to lower the interest rate and keep the other features the same. You may also be able to change the term of the loan such as going from a 30 year to a 15 year to save money on interest or go from a 15 year to a 30 year to save money monthly. You may also be able to change from a fixed rate, to an adjustable hybrid ARM to save money monthly or switch from an ARM to a fixed rate to make sure you have consistent payments. You may qualify for the IRRRL refinance (some people refer to this as a streamline) which may reduce the costs associated with a refinance.
The Cash Out Refinance is another highly effective way to utilize your VA mortgage loan and home owner's equity. Many home owners are using the Cash out refinance to pull equity out of their home to do things such as build a deck, remodel, or even add a room or have solar panels installed! Many home owners are also using their home equity to pay off high interest or revolving accounts such as credit cards, this may help you in your quest to become debt free.
The costs associated with a veterans administration home loan will vary from lender to lender, they usually consist of the funding fee, which may be waived in some scenarios as well as closing costs. Most lenders now a days will have no cost options available however. Consult a licensed loan specialist, or mortgage broker today to see what your options are.
First, you may utilize your VA mortgage loan to purchase a home, in this scenario you may sometimes make a home purchase with 100 percent financing. For example, let's say you have your dream home in your crosshairs, but the home appraised for three hundred thousand dollars. With the VA loan, you may be able to take out a loan for the full amount, and not have any down payment. You would still have closing costs associated, but with a conventional loan you would be required, in most scenarios to have at least five percent down, with a FHA loan about three percent down, and you will have mortgage insurance on top of it! With a VA Loan and as of this writing, there is no mortgage insurance required.
After you have obtained a VA mortgage loan, you can refinance it if you want to make changes. For example, if interest rates have dropped since getting the loan you may refinance it to lower the interest rate and keep the other features the same. You may also be able to change the term of the loan such as going from a 30 year to a 15 year to save money on interest or go from a 15 year to a 30 year to save money monthly. You may also be able to change from a fixed rate, to an adjustable hybrid ARM to save money monthly or switch from an ARM to a fixed rate to make sure you have consistent payments. You may qualify for the IRRRL refinance (some people refer to this as a streamline) which may reduce the costs associated with a refinance.
The Cash Out Refinance is another highly effective way to utilize your VA mortgage loan and home owner's equity. Many home owners are using the Cash out refinance to pull equity out of their home to do things such as build a deck, remodel, or even add a room or have solar panels installed! Many home owners are also using their home equity to pay off high interest or revolving accounts such as credit cards, this may help you in your quest to become debt free.
The costs associated with a veterans administration home loan will vary from lender to lender, they usually consist of the funding fee, which may be waived in some scenarios as well as closing costs. Most lenders now a days will have no cost options available however. Consult a licensed loan specialist, or mortgage broker today to see what your options are.
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