Everything You Need to Know About VA Mortgage Loans
VA mortgage loans are available to most United states service members, which the United States Department of Veteran Affairs guarantees. Various benefits come with VA mortgage loans. Firstly, it gives you the ability to buy a home without necessarily having any money, you don’t have to pay for private mortgages, and it is possible to refinance your home up to a hundred percent of its value.
Another benefit of VA mortgage loans is that it is easy to get them since there is government insurance on them, and there are fewer risks to the lenders. Sellers can also pay your closing cost, and you might also be eligible for the VA streamline refinance if you already have a VA loan.
Also, if veterans are considered to be at least ten percent disabled or receive any payments for the disability from the VA, they may qualify for the funding fee waiver. This article discusses everything you need to know about VA Mortgage Loans.
Who Qualifies for The VA Loan?
Almost every honorably discharged service member and all members who are actively on duty are eligible for a VA loan. You can also be eligible for a VA loan if you have served on active duty for 90 days during wartime or on active duty for 181 days during peacetime.
You also qualify for VA Mortgage Loans if you have served for six years in a national guard or reserves or if you are currently receiving payments for disability from VA. You can also qualify for a VA loan if your spouse was a service member and was killed while executing the duty.
What’s VA Funding Fee and Is It Necessary?
VA funding fee is the amount paid directly to the department of veteran affairs, and it is necessary to provide you with an opportunity and a guarantee to receive a VA loan absolutely at no cost or just a little cost.
The amount of VA funding fee you pay depends on various factors. For instance, the fee you pay depends on whether you are retired, active on duty, a guard, or a reserve. It also depends on whether it is your subsequent or first-time application, the amount you are putting down as a down payment, or whether you want a cash-out to refinance.
It is also important to note that you shouldn’t necessarily pay the VA funding fee out of your pocket; you can pay it throughout your loan. You should also note that you are supposed to pay for typical closing costs like title and appraisal. However, if you buy a new home with a VA mortgage loan, the seller can pay part or all the closing costs.
What’s VA Streamline Refinance?
If you already have a VA mortgage and want to lower the interest rate with no or negligible out-of-pocket closing costs, then the VA streamline refinance option is available for you. You are not required to provide job verifications, W2s, bank statements, or paychecks.
Summary
One thing you need to know about VA Mortgage Loans is who qualifies for the loans. You also need to know the VA funding fee and if it is necessary. Another thing you need to know about VA loans is the VA streamline refinance; all these concepts have been discussed in this article.
