The VA home loan program is a benefit offered to eligible service members, veterans, and their surviving spouses. The VA Home Loanprogram helps them become homeowners by providing a home loan guaranty benefit and other housing-related programs to help them buy, build, repair, retain, or adapt a home for their own personal occupancy.
VA home loans are provided by private lenders, such as banks and mortgage companies, and the VA guarantees a portion of the loan. This enables the lender to offer more favorable terms to the borrower, such as lower interest rates and no down payment requirements. This makes it easier for eligible individuals to purchase a home and achieve their dream of homeownership.
It is important for potential homebuyers to understand the process and benefits of a VA home loan before making a purchase. The VA Home Loan Buyer's Guide is a valuable resource that can help you understand the home buying process and how to make the most of your VA loan benefit. It covers important information such as eligibility requirements, the loan application process, and how to use the loan benefit effectively. It is highly recommended that you download and read the VA Home Loan Buyer's Guide before making any decisions related to purchasing a home with a VA loan.
VA home loans offer several benefits to eligible service members, veterans, and their surviving spouses. Some of the main benefits include:
Most active duty military members and veterans who were honorably discharged are eligible for a VA loan. These loans are backed by the Department of Veterans Affairs and are designed to help veterans and active duty military members purchase homes. There are certain eligibility requirements that must be met, such as length of service and discharge status, but overall, VA loans are a popular option for service members and veterans looking to buy a home.
VA loan applicants are typically required to pay a funding fee to the Department of Veterans Affairs (VA) as a way to help defray the costs of the loan program. The funding fee is a percentage of the loan amount and varies depending on the type of loan, down payment, and the borrower's military category, as well as whether it is a first-time or subsequent use of the benefit.
The funding fee is a percentage of the VA Loan amount and it can be financed into the loan, which means it doesn’t have to be paid out of pocket. For veterans who have used the VA loan benefit before, the funding fee is higher than for those who ahve not yet used their VA Loa nBenefit. Here's a link to the VA Funding Fee Chart.
Veterans with a service-connected disability, as well as surviving spouses of veterans who died in service or from a service-connected disability, are exempt from paying the funding fee.
The VA funding fee varies depending on several factors, including your military status (Active Duty, Retired, Guard or Reserve), whether this is your first time using the VA loan benefit, the type of loan you are applying for (e.g. first-time use, subsequent use, or cash-out refinance), and how much of a down payment you are putting down. The fee ranges from as little as ~1.25% up to ~3.6% of the loan amount. See the Current VA Funding Fee Chart here.
In general, the more money you put down as a down payment, the lower the VA funding fee will be. It is recommended that you contact us for specific information about the cost of the VA funding fee for your particular situation.
The VA funding fee can be included in the loan and financed, so the borrower does not have to pay it out of pocket at closing. This means that the funding fee is added to the loan amount and the borrower pays it off over the life of the loan, along with the principal and interest. This option is available for most borrowers, and makes it easier for veterans and service members to purchase a home without having to come up with additional cash at closing.
Yes, however witha VA loan, the seller can pay for some or all of the closing costs, including the VA funding fee, as a way to help the buyer with the purchase of the home. The VA allows the seller to pay up to 6% of the loan amount towards the buyer's closing costs, which can include the VA funding fee.
This can be a significant benefit for veterans and service members who may not have the cash on hand to pay for these costs out of pocket. However, it is important to note that the seller's concessions must be agreed upon by both buyer and seller and must be included in the sales contract, and it is also subject to the lender's approval..
A VA Streamline Refinance, also known as a VA Interest Rate Reduction Refinance Loan (IRRRL), is a refinance option available to homeowners with existing VA loans. Here are the top benefits of a VA Streamline Refinance:
It's always good to check with Jake about the specific requirements and benefits of a VA Streamline Refinance. Schedule a call today to get started saving money on your current VA Loan!
These materials are not from HUD, VA, or FHA and were not approved by HUD or any other government agency.