Long Real Estate | VA Loans
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VA Loans

If you’re a veteran or currently servicing in our armed forces and thinking about purchasing a new home, or even thinking about refinancing your existing mortgage, it will be worth your while to investigate the benefits of a VA backed home loan. VA loans have been around since the 1940s, but have become more popular in the mortgage market place as lenders have been reducing the risks associated with foreclosures.

 

Since the housing crisis of 2009, most lenders have been requiring larger down payments or borrowers to pay expensive PMI as part of their monthly mortgage payments. Conversely, VA has been more flexible with their underwriting standards and has increasingly become the preferred mortgage of choice for most eligible borrowers.

 

Let’s check out some of the main advantages the VA loan has to offer:

Home Purchase

1. 100% financing – That right, no down payments required. There are very few mortgage products out there that require $0 down but the VA is still one of them. The maximum limits vary on the county; for most areas in the Midwest the limit is $417,000.

2. No monthly PMI payments – Referred to as PMI, MI, or just mortgage insurance, it’s essentially foreclosure insurance. It’s required on most mortgages without a 20% down payment and it is usually included in the monthly mortgage payment. VA loans don’t have monthly PMI payment but veterans may be subject to a VA funding fee that is financed into the final loan amount.

3. Low mortgage rates –VA mortgage are more than often lower than most mortgage programs even with large down payments.

4. Relaxed credit standards – VA loans have more relaxed underwriting standards for credit scores, bankruptcies, and previous foreclosures than most mortgages programs.

 

Refinancing

1. 100% financing available – Not only can you get 100% financing to purchase a new home but you can do the same on a refinance. So if you’re looking to just get better terms on your existing mortgage or consolidate debt, do home improvements, or pull out the equity out of your home for any reason, you can do that with VA.

2. Interest Rate Reduction Loan – Sometimes referred to as a VA streamline loan. This special type of refinance is available to veterans with an existing VA loan and allows them to refinance to a lower rate should they become available with very little paperwork. They don’t require a new appraisal, income, or asset verification so they are quick and easy to process and get loan approval.

 

There are several options within the VA loan program. Regardless whether you are purchasing or looking to refinance, the VA program of today is sure to save you hassle, time, and money. Should you need any assistance or advise with any of these programs please feel free to contact me directly.

 

image001 (2)Josh Klenda
Director of VA Lending
#10 VA Loan Originator in the Nation
Approving loans in all 50 States

Community 1st National Bank
11030 Oakmont, Ste 100
Overland Park, KS 66210

josh@smartvaloans.com
direct: 913.839.7900