Why a VA Loan?

Why indeed!

How about the lowest rates in history?

For our Veterans, rates are as low, comparatively, as they are for other programs. Here's an approximate payment breakdown for a $175,000 home purchase:

Down payment -0- (Yes, you saw this correctly...ZERO down for VA loans)

Monthly principal & interest at 3.250% (Yes, 3.250%, 3.412% APR):      $   762
Estimated monthly property taxes:                                                             $   208
Estimated monthly homeowners insurance:                                             $     50
Total monthly payment:                                                                                $1,020.

Can you say "Cheaper Than Rent?" I think that you can!

Get more info on VA loans.

Here's some VA stuff to ponder:

Why VA?
-100% financing up to the County loan limits established by the FHFA (Federal Housing Finance Agency).
-No bottom line credit score.
-Streamline refinance interest rate reduction loan.
-Fully assumable by any qualified person (does not have to be a Veteran).
-Fixed and adjustable rate mortgages.
-VA funding fee can be added to 100% financing.
-Seller can assist with closing costs.

Breaking it down

VA insures loans, like FHA, but does not make loans. The borrower qualifying standards, like most loan programs, are not that much different than FHA or conventional. VA does like to reward Veterans however (rightly so!), and lenders will do all they can to put a Veteran into a home.

 Allowable vs. Unallowable Costs

There are certain fees Veterans are not allowed to pay.

 VA ALLOWABLE FEES

The Lender may not charge a veteran borrower any fee that is not included in the schedule of fees below. The fee schedule applies only to charges paid by the veteran borrower. The veteran may pay reasonable and customary amounts of the following fees:

PURCHASE TRANSACTIONS / REFINANCE TRANSACTIONS

·         Loan Origination Fee (not to exceed 1% of the loan amount)

·          Loan Discount (reasonable - not to exceed 2% financed)

·          Appraisal Fee

·         Credit Report

·         VA Funding Fee (See Chart below)

·         Flood Certificate Fee

·         VA Compliance Inspection

·         Title Examination/Search

·         Title Insurance

·         Title Endorsement (environmental protection)

·         Recording Fees

·         Recording of Warranty Deed

·         Tax Stamps

·         Release Fees

·         Tax Stamps

·         Survey

·         The portion of taxes, assessments & similar items for the current year chargeable to borrower & initial deposit for tax & insurance

·         Escrow account

·         Pest Inspection

·         Overnight Delivery Fee

·         Subordinate/Demand/Reconveyance Fees

·         Taxes

·         Hazard Insurance

·         The borrower must either:

o   Pay the VA Funding Fee in cash at closing, or

o   Include the entire VA Funding Fee in the loan amount.

 UNALLOWABLE FEES

The Veteran cannot pay these:

·         Lender fees such as Document preparation, processing fees, administration fees, application fee, etc.

·         Escrow or Set-Up fee

·         HOA transfer fee

·         Pre-paid interest on a new loan

·         Title endorsements exceeding $50

·         Early Issue title insurance

·         Compliance Inspections in excess of one

 If you figure about $2500 for a purchase price/loan in the $175-200K range you will be close on what the Veteran cannot pay. Any interested party, other than the Vet, can pay the unallowable fees.

Get more info on VA loans.