What Veterans Should Know About VA Home Loans
To secure a VA home loan in Sacramento, contact United Wholesale Lending today!
According to Veteran Affairs, out of the 21 million Servicemembers and Veterans living in the United States, six percent have utilized a Veteran Affairs (VA) Home Loan in the past few years. The VA Home Loan program has advantages for servicemen and women and understanding how this program can benefit you as a home buyer can make a huge difference in your home financing process. Some veterans are possibly not privy to the advantages of having one, but VA home loans are something most civilian homebuyers wish they had access to.
Here are some facts about VA home loans and how it benefits servicemen and women who utilize them! It’s a benefit that can be repurposed! Yes, you read that right, you can use this benefit as many times as you want, and we will help you understand how.
Fact one… Usually, the most enticing benefit of a VA home loan is the fact that it requires no down payment and no mortgage insurance! Most loan programs can require 3.5% or more on a down payment. For homes in California where the market continues to heat up, this can make a humongous difference when you are purchasing a home.
If you purchased a home with a VA loan, but you’ve outgrown that house and need something larger, or your family has moved and you need something smaller. You have multiple options to reopen the VA home loan program. When you sell the house or completely pay off the VA loan, you can also reapply your benefit to buy your next home because that benefit is now available in full.
Another way you can use your entitlement is for enlisted and eligible Veterans to receive a one-time restoration when they pay off the VA loan, but keep the home. This particular scenario comes into play if you purchased the home a long time ago, and have paid off the loan. This also applies if you have refinanced the VA mortgage with a non-VA loan. In these situations, you can keep the home, and enjoy the benefits of using the VA benefits one more time.
The VA loan benefit will NEVER expire. Once you apply for the loan your then earned eligibility for the VA home loan will never expire. As long as eligibility can be established, regardless if you served 20, 30, or even 50 years ago, you can still buy a home using this program. If you have never used this benefit before, it’s important to work with a trusted lender who can help you take advantage of the benefits awarded to you for your service. For instance, a United States Navy Veteran with at least 90 days in service is most likely eligible. Eligibility is based on the length of time and the period in which you served.
In order to check your eligibility, reach out to a trusted lender, like United Wholesale Lending. Together we will walk you through the steps, like step one, locating your DD Form 214 and then requesting your VA Certificate of Eligibility “COE” for you. This form can be requested directly from the veteran eBenefits website but is also something we help our clients find all the time.
VA loans allow you to buy, refinance or tap into home equity! VA home loans not only provide unparalleled home buying advantages but they also can be used to refinance your existing mortgage, whether it’s a VA loan or not.
Have you heard of the IRRRL known as the Interest Rate Reduction Refinancing Loan? Homeowners with a VA loan can use this feature to easily drop their rate and payment without an appraisal, paystub, W2, or bank statement. The VA streamline refinance, as it is most commonly known, gives VA loan holders a faster, cheaper way to access lower refinance rates when rates fall.
Even homeowners without a VA loan can use a VA refinance. The VA cash-out loan is available to eligible Veterans who don’t have a VA loan currently. As its name suggests, a VA cash-out refinance can be used to turn your home’s equity into cash. You simply take out a bigger loan than what you currently owe. The difference is issued to you at closing.
The VA cash-out loan amount can be up to 100 percent of your home’s value in many cases. Use the proceeds for any purpose – home improvements, college tuition, or even a new car. Many homeowners today are dropping their rate and taking cash out simultaneously, accomplishing two goals at once.
But you don’t have to take out cash to use this VA loan option. You can also use it to pay off a non-VA loan. Eligible homeowners who pay mortgage insurance or are dealing with other undesirable loan characteristics should look into refinancing with a VA loan. It can eliminate PMI, get you into a stable fixed-rate loan, pay off a second mortgage, or simply reduce your rate to make homeownership more affordable.
VA Loan Rates Are Drastically Lower! According to loan software company Ellie Mae, VA loan rates are typically lower than those of conventional loans. The VA backs the mortgages, making them a lower risk for lenders. Those savings are passed on to Veterans. Additionally, VA home loans come with some of the lowest foreclosure rates of any loan type, further reducing risk for lenders. No surprise here, but Veterans and Service People take homeownership seriously. These factors add up to lower rates and affordable payments for those who choose a VA loan.
You can buy many types of properties with a VA loan, including a single-family free-standing home, a home of up to four units, and even the popular and recent manufactured homes. Condominiums are commonly overlooked by VA home buyers because they aren’t typical homes, but you can buy a condo with a VA loan! Condominiums are ideal starter homes. Their price point is often lower than single-family homes and condos are often the only affordable option in many cities and areas. The VA maintains a list of approved condominium communities. Veterans can search by city, state, or even condominium name on VA’s condo search tool. It’s not a shortlist. There are more than 2,400 approved condo communities in Washington State, about 1,000 in Texas, and a staggering 9,000 in California.
Try to consider the vast number of homes you can shop for with a VA home loan. The possibilities are endless for a Veteran or Servicemember that is considering using the VA home loan benefit. United Wholesale Lending has a team of experts to advise on loans and are excited to help you take this step towards utilizing your well-earned benefit and becoming a homeowner! To secure a VA home loan in Sacramento, contact United Wholesale Lending today!