For our VETERANS
Take advantage of your Veteran’s benefits and purchase your home utilizing the VA loan program!
Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.
VA loan highlights:
- NO down payment requirements
- Lower interest rates
- Flexible guidelines
- Lenient underwriting
- More credit and income flexibility – making it easier for eligible borrowers to qualify
- No monthly mortgage insurance requirements
The Biggest Benefits of a VA Loan
No down payment on a VA loan
To purchase a home, most home loan programs require you to make at least a small down payment. However, the not with the VA home loan. With this loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.
No mortgage insurance for VA loans
Typically, lenders require you to pay for monthly mortgage insurance if you make a down payment that’s less than 20 percent. This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.
VA loans require neither a down payment nor monthly mortgage insurance. This makes a VA-backed mortgage very affordable upfront and over time.
VA loans have a government guarantee
There’s a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you’re unable to make monthly payments for whatever reason.
This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.
Your ability to shop and compare VA loans
VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans are not set by the VA itself. Instead, VA loans are offered by various banks, savings-and-loans institutions, credit unions, mortgage brokers (such as Aiello & Associates) and mortgage lenders –
each of which set their own VA loan rates and fees.
This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
Our VA loan rates are very competitive, so if you’re shopping for your VA loan, we can provide you with quote so that you may compare to other lender’s quotes to see which works best for you.
VA loans don’t allow a prepayment penalty
A VA loan won’t restrict your right to sell your home if you decide you no longer want to own it. There’s No prepayment penalty no matter when you decide to sell your home.
Furthermore, there are no restrictions regarding refinancing your VA loan.
You can refinance your existing VA loan into another VA loan to lower your interest rate utilizing the IRRRL (Interest Rate Reduction Refinance Loan) program or refinance into a non-VA loan at any time.
VA loans come in a variety of options
A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, newly built home, manufactured home, duplex or other types of properties.
Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy efficient. The choices are yours.
Aiello & Associates can help you decide.
Aiello & Associates can help you decide.
Easier to qualify for a VA loan
Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. However, as compared to other loan programs, VA loan guidelines tend to be more flexible and this is made possible because of the VA loan guaranty.
The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance your current VA loan.
VA loan closing costs are lower
The VA limits the closing costs that lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.
The VA offers Funding Fee flexibility
VA loans require a “Funding fee”, an upfront cost based on your loan amount, your type of eligible service, your down payment amount plus other factors. Funding fees do not need to be paid as cash (i.e. through escrow). The VA allows the fee to be financed into the loan, so nothing will be due at closing.
And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
Note:
with a $0 down payment – the Funding Fee will be higher.
VA loans are assumable
Most VA loans are “assumable,” which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible.
Assumable loans can be a huge benefit when you sell your home – especially in a rising mortgage rate environment. If your home loan has today’s low rate and market rates rise in the future, the assumption features of your VA become even more valuable to a home buyer.
