If you are a veteran who is looking to purchase or refinance a home, be aware that there is a special program that can help make this happen for you. The VA Mortgage Loans Center is a lender that specializes in getting discount home financing rates for members of the United States Armed Forces. This agency provides special rates for soldiers in active duty, as well as veterans. These VA Mortgage Loans are different from standard loans in many ways, and can save you some serious money if you qualify. Special disability rates are also available for those who qualify.
For starters, VA mortgages are very easy to secure if you fulfill the eligibility criteria. To be eligible, you must have served for at least 90 consecutive days during wartime, or 181 consecutive days during peacetime. Reservists also qualify as long as they have served for six years, not necessarily consecutive. Your VA Mortgage Center can give you more information as to whether your reservist branch qualifies. Widows of deceased veterans or prisoners of war can also qualify as long as they are not remarried, or the person has been MIA for at least 90 days. You also must have a VA Certificate of Eligibility in order to qualify.
If you’re eligible for a VA mortgage loan, you will be entitled to a loan at special financing rates. VA mortgages are usually comparable to regular mortgages only you save much more since they don’t require a large down payment. The other advantage of VA loan rates is that regardless of credit history, veterans will always qualify for the best rates available.
The maximum VA mortgage loan amount that is available is $359,650, and it’s important to remember that the loan amount you will be able to secure will depend on several factors. Closing costs can also vary, but certain veterans will qualify for no money down. You will also not have to worry about getting mortgage insurance, since you will instead pay off a VA Funding Fee over the life of the loan. This fee is much cheaper than traditional mortgage insurance. The fee is 2.15% for regular veterans and 2.4% for reservists. If there is a down payment attached to the loan, then these percentages can be lower.
It is also possible to acquire more than one VA loan. As with the regular VA loans, regardless of your credit history, you will be able to receive low rates, and minimal closing costs and down payments. The only thing the VA Mortgage Center will require is a default-free loan history on your original loan. The funding fees are also different for second loans. For both regular veterans and reservists the fee is 3.3%. It is also possible to refinance your loans through the VA, and you will get the same 3.3% rate whether you are a regular veteran or a reservist.
If you are a veteran, be sure to check out your options when you apply for a loan.