What is a VA home loan?
According to http://www.benefits.va.gov/homeloans/, “VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.”
“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.”
If you meet the VA Home Loan requirements by serving our country, a great loan choice in Michigan is the VA loan
What are the Benefits to VA Home Loans?
Purchase Home loans allow service members to purchase a home with no down payment. The Va Loan is a 100% financing loan which means a buyer is not required to apply a portion of their own money towards the costs of purchasing a home.
What is and Interest Rate Reduction Refinance Loan(IRRRL)
The IRRRL is a refinance mortgage that allows homeowners that already have a VA loan on their home to drop the payment to current market interest rates. It is in fact a refinance loan so there are still qualifying factors that you must meet to drop your payments. The IRRRL is typically called a Streamline Refinance VA loan because the paperwork is streamlined and may not required basic things like income or a home appraisal.
- No appraisal or credit underwriting package is required when applying for an IRRRL.
- An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
- When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
- No lender is required to give you an IRRRL, however, any VA lender of your choosing may process your application for an IRRRL.
- Veterans are strongly urged to contact several lenders because terms may vary.
- You may NOT receive any cash from the loan proceeds.
What are the eligibility requirements for a VA Loan?
To be eligible for a Purchase VA loan or a VA Refinance Loan you must be able to prove your income, have acceptable credit and have a Valid Certificate of Eligibility (COE). Additionally the home itself must qualify and meed basic livability guidelines for financing.
What Type of Home can I buy with a VA Loan?
A VA loan may allow you to purchase a stick built home loan, Condo or there may even be options for a VA Manufactured Home Loan.
Additional used of VA home loans are to:
- Buy a home, a condominium unit in a VA-approved project
- Build a home
- Simultaneously purchase and improve a home
- Improve a home by installing energy-related features or making energy efficient improvements
- Buy a manufactured home and/or lot.
What are the advantage of a VA Loan?
For those eligible for a VA Loan, there may be may advantages including easier qualifications, no down payment and lower costs. According to the VA website here are additional benefits and advantages of a VA Loan:
- No down payment as long as the sales price doesn’t exceed the appraised value.
- No private mortgage insurance premium requirement.
- VA rules limit the amount you can be charged for closing costs.
- Closing costs may be paid by the seller.
- The lender can’t charge you a penalty fee if you pay the loan off early.
- VA may be able to provide you some assistance if you run into difficulty making payments.
How do I apply for a VA Loan
Since the VA does not do direct financing, you would need to apply with a bank or mortgage lender that is approved to offer VA loans. Riverbank Finance LLC is proud to offer the VA loan product to their clients and offers many loan terms for Financing options. To start, call us today at 800-555-2098 or request information below: