Feature Image Courtesy of VA-mortgage-guidlines.org
With over 10 years experience in Real Estate, Ben Arce looks to provide you with expert tips and opinions that cover just about every aspect of real estate. Whether you’re thinking of buying or looking to expand your real estate portfolio, Ben has you covered. A Millersville University grad, Ben has went on to assist scores of buyers and sellers in and around the Philadelphia Market. Now he is looking to lend his expert advise to you!
Breaking Down The VA Loan
In the spirit of Memorial Day I wanted to give some information on VA loans. First and foremost, we at Wooder Ice want to thank all the veterans for their service and commitment to our country. Now here’s the scoop…
What Is a VA Loan?
VA loans are home loans for the purchase of a primary residence available to consumers who have served or are presently serving in the U.S. military. While the Department of Veterans Affairs (VA) does not lend money for VA
loans, it backs loans made by private lenders (banks, savings and loans, or mortgage companies) to veterans who qualify.
Who Is Eligible for a VA Loan?
• Active-duty personnel
• Reservists/National Guard members
• Some surviving spouses
What Are the Benefits of a VA Loan?
There are many, as taken directly from the Veterans Affairs site:
• No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Buyer informed of reasonable value.
• Negotiable interest rate.
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty.
• For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
• VA assistance to veteran borrowers in default due to temporary financial difficulty.
How Can Veterans Get VA Loans?
• Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program, but will need a Certificate of Eligibility from the VA to prove to the lender they are eligible for a VA loan. Lenders can also get the certificate on behalf of their clients.
How Big of a VA Loan Can a Veteran Get?
• According to the VA there is no maximum loan amount. However, there are county limits that must be used to calculate the VA’s maximum guaranty amount for a particular county. Generally, an eligible
veteran can get a loan up to $417,000 with no money down and in some high-cost places, up to $1,094,000.
As always I am here as a resource. Don’t hesitate to shoot me an email and I’d be more than happy to help.
Thanks for reading.