Save Money on A Home Purchase With a VA Home Loan
Home loans are presently at an all-time low. Currently, lenders are able to issue new purchase, refinance and FHA loans at rates that were previously unheard of. These rates are a result of the economic crash and housing market crash of 2008, and allow first-time homeowners, veterans and everybody else to purchase or refinance a home at prices and rates that have never before been seen.
While this is great news for those who are currently looking for a new home, home buying gets even better for those who have worked in the Armed Forces and have served to protect our country and its freedom. Those who have been in the Armed Forces are eligible to receive a VA Home Loan. This is a special loan that allows honorably discharged servicemen and women to purchase a home at an even lower rate than what the public is able to qualify for. While there are certain limitations to VA loans and a special process to obtain one, these loans are a great way for veterans of the military to provide a home for their families.
There are a few qualifications one must meet to receive a VA home loan. First, one must have served in the US armed forces and have received a DD214. A DD214 certifies that the holder served honorably in the US Armed Forces. Once the DD214 is obtained, interested homebuyers can find a VA-specific lender who can help them find out what their loan limit will be. Be careful, however, as not all lenders are qualified to write VA loans. Lenders who deal with VA loans will be specially certified and licensed to issue this kind of loan.
VA Loans are quite simple and their limitations are easy to understand. Qualified buyers may borrow up to $719,000 with no down payment for the purchase of a new home, and this amount may be increased up to $1,094,625 in areas that are specially constituted as “high-cost counties.” VA loans allow the buyer to borrow up to 103% of the total purchase price, and the buyer is not required to purchase private mortgage insurance. There are a few fees associated with a VA loan, but they will never be more than 3.15% of the total purchase price. In addition, these fees may be rolled into the amount of the loan and paid off over time.
For those who currently own a home and also qualify for a VA loan, they have the option of refinancing to lower their loan interest rate. These refinances may be part of a “streamline” refinance that allows the homeowner to save time and money on the creation of a new loan. The streamline option allows a new home loan to be created without many of the hassles of a traditional refinance, such as a home appraisal. Homeowners are able to take advantage of these expedited refinances and lower their interest rates to the level that are currently being given to new VA home loan buyers. Refinancing a property can potentially save a homeowner thousands of dollars over the life of their loan.
No matter your buying circumstances, if you are looking for a home or currently own a home, a VA loan is the best option if you qualify. With the available financing options and lowest rates in history, consider purchasing or refinancing your home. This post was written by Jessica Markam of MilitaryVALoan.com. If you are interested in finding a VA lender in your area, visit MilitaryVALoan.com.Posted by Judy Orr on