What is a VA Guaranteed Loan?
According to valoans.com, “VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. To get a loan, a veteran must apply to a lender. If the loan is approved, VA will guarantee a portion of it to the lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms.
There is no maximum VA loan but lenders will generally limit VA loans to $417,000. This is because lenders sell VA loans in the secondary market, which currently places a $417,000 limit on the loans. For loans up to this amount, it is usually possible for qualified veterans to obtain no down payment financing. A veteran’s maximum entitlement is $36,000 (or up to $104,250 for certain loans over $144,000). Lenders will generally loan up to 4 times a veteran’s available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price.”
VA HOME LOAN FACTS:
#1. 90% of VA loans come with NO DOWN PAYMENT!
This is amazing! Many people are unable to buy because they do not have the money to cover out of pocket costs such as down payments and closing costs. Imagine putting 0 money down and getting your family into a home- Awesome!!
#2. VA refinance loans have increased 750% since 2006.
With interest rates at the lowest they have been in 2 years, now is the time to refinance your home! Veterans cane take advantage of this whether you have a VA loan or not.
#3. 8 out of 10 VA borrowers don’t qualify for conventional financing
Conventional Financing has more stringent requirements when purchasing a home. The VA loans are more flexible on credit scores and underwriting standards which is beneficial to those with less than perfect financial profiles.
#4. Veterans who’ve experience bankruptcy or foreclosure can still qualify
Typically there is a two-four year waiting period to purchase a home after a bankruptcy or foreclosure.. Sometimes Veterans are eligible to get a home loan after a short one-year waiting period.
#5. VA loans outperform all others in serious delinquency and foreclosure
This loan program has flexible requirements and it also places a premium on the financial health of its borrowers.
Thank you to all of our Veterans who have proudly fought for our country! If you or someone you know is a vet, I would be honored to help them find their next home. Please contact me today with all of your real estate needs.
Direct: 602-753-8710
Email: MonicaPendrick@KW.com
Source: veteransunited.com
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