Phoenix VA Loans AZ Lending Experts
Azlendingexperts
2015-08-12
Views 19
If you are eligible for a VA Loan, you are have an advantage that most people don’t have. The VA Loan program is the most powerful home loan program available, and it’s only available to veterans, service members and military families. If you fit this description, you have a great option for a home loan.
Most anyone that purchases a home applies for a home loan. So, how is a VA loan different from your basic home mortgage loan?
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
What sets this type of home mortgage apart from the rest is the great advantages only found in a VA loans. Some of the advantages are:
1. No Down Payment
Service members may find it difficult to save money and build credit when serving our Country. With a VA Loan, qualified borrowers can finance 100% of the home’s value without having to make any down payment.
2. No Private Mortgage Insurance
Many conventional lenders require the borrower to pay private monthly mortgage insurance unless they are able to put at least 20% down when closing on the home mortgage. This can be difficult for many veterans.
With a VA Loan, there is no private mortgage insurance. This saves you money on your monthly mortgage payment. The federal government backs all VA Loans and assumes the risk on behalf of the borrower.
3. Competitive Interest Rates
Not only can you get a home with no money down, and forego the payment of mortgage insurance, but with a VA Loan, you can still get great interest rates. Interest rates are based on risk, and with the Government assuming much of the risk, financial institutions can offer very competitive interest rates.
4. Basic Allowance for Housing
Basic Allowance for Housing (BAH) is a significant benefit for those who are qualified to get a VA Loan. Lenders can count your basic housing allowance as effective income, which means they will include this in your debt to income ratio because they know you can use this to pay your monthly mortgage.
There is a one-time funding fee that can vary based on the down payment and type of veteran. Overall though, VA loans can offer significant savings, both up front and each month thereafter. For Phoenix VA Loans AZ Lending Experts will make sure that if you are a veteran or other eligible borrower under the VA Loan program, that you will receive the full extent of the VA benefits allowed. You can find Frank here.
Almost all veterans qualify for the program. But, there are others that can utilize a VA loan program.
Most members of the military, veterans, Reservists and National Guard members are eligible, as are spouses of military members killed in action. Active duty members are eligible to apply after about six months of service. Potential borrowers must obtain a certificate of eligibility before applying for a loan.
Most anyone that purchases a home applies for a home loan. So, how is a VA loan different from your basic home mortgage loan?
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
What sets this type of home mortgage apart from the rest is the great advantages only found in a VA loans. Some of the advantages are:
1. No Down Payment
Service members may find it difficult to save money and build credit when serving our Country. With a VA Loan, qualified borrowers can finance 100% of the home’s value without having to make any down payment.
2. No Private Mortgage Insurance
Many conventional lenders require the borrower to pay private monthly mortgage insurance unless they are able to put at least 20% down when closing on the home mortgage. This can be difficult for many veterans.
With a VA Loan, there is no private mortgage insurance. This saves you money on your monthly mortgage payment. The federal government backs all VA Loans and assumes the risk on behalf of the borrower.
3. Competitive Interest Rates
Not only can you get a home with no money down, and forego the payment of mortgage insurance, but with a VA Loan, you can still get great interest rates. Interest rates are based on risk, and with the Government assuming much of the risk, financial institutions can offer very competitive interest rates.
4. Basic Allowance for Housing
Basic Allowance for Housing (BAH) is a significant benefit for those who are qualified to get a VA Loan. Lenders can count your basic housing allowance as effective income, which means they will include this in your debt to income ratio because they know you can use this to pay your monthly mortgage.
There is a one-time funding fee that can vary based on the down payment and type of veteran. Overall though, VA loans can offer significant savings, both up front and each month thereafter. For Phoenix VA Loans AZ Lending Experts will make sure that if you are a veteran or other eligible borrower under the VA Loan program, that you will receive the full extent of the VA benefits allowed. You can find Frank here.
Almost all veterans qualify for the program. But, there are others that can utilize a VA loan program.
Most members of the military, veterans, Reservists and National Guard members are eligible, as are spouses of military members killed in action. Active duty members are eligible to apply after about six months of service. Potential borrowers must obtain a certificate of eligibility before applying for a loan.
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