A VA loan allows a Veteran (and his/her spouse) to purchase a home with no money down and obtain a fixed rate. Even with down payment, a VA loan is often chosen by a Veteran over any other loan because the interest rate is typically lower than a regular conventional loan. Be careful, not all lenders will tell you that, or not all lenders charge a lower rate.
Other Important Notes
- In some cases, the Veteran will pay a VA funding fee that is added to the loan amount (financed into the loan). This fee is based on service, down payment and usage and ranges from 1.25% to 3.30%. Your RMN, Inc. Loan Officer can guide you through this process. But, don’t let another lender discourage you from this program if you are subject to the fee – it is often still the best option.
- If a Veteran receives at least a 10% service connected disability, he/she is exempt from the VA funding fee.
- VA loans allow for higher debt ratios, so Veterans often qualify for a higher purchase price.
- VA loans are not bad credit loans, but there is some leniency for Veterans that have had credit glitches.
- When it comes to underwriting, it isn’t scary at our office – our Underwriter sits right down the hall from our Loan Officers!
- The conforming VA loan amount is $424,100 – you can exceed this amount and obtain a VA jumbo loan as well.
- You can use the VA loan more than once – share this news – many Veterans don’t know this!
Make sure you are working with a trusted Loan Officer that will guide and encourage you through the VA home loan process. Contact RMN, Inc. today to get started!