Frequently Asked Questions
Please select from one of the following topics if you have any questions about a VA loan or refiance.
- How do I know if I qualify for a VA Loan?
- Why would I want a VA loan?
- Can I purchase with $0 money down?
- Can I lower my monthly payment?
- Is a VA more lenient on a qualification?
Q. How do I know if I qualify for a VA Loan?
All militants that have served over two years are eligible for a VA loan.
Q. Why would I want a VA Loan?
The very simple answer is that you can get Lower Rates than typical Conventional loans and you can purchase with $0 Down.
Q. CAN I Purchase with $0 MONEY Down
VA Loans are the very last product that will still allow the borrower to finance 100% of the home’s value and purchase with $0 down. With the mortgage market ever changing Banks are starting to require large down payments for conventional loans. The once possible 0-5% down payment has changed drastically to 10-20% down. This drastic change has put home ownership out of reach for many buyers. Think about it, how much will $0 down save you? What could you do with that money? Conventional loans will require a minimum of 10% down, and in many cases as much as 20%. Below is a chart that will demonstrate just how much money this down payment is and how much you will not have to put down with your VA loan.
|Down Payment on Loan Amounts|
|Loan Amount||5% Down||10% Down||20% Down|
Q. CAN I Lower MY Monthly Payment?
VA Loans offer many benefits for Veterans, among those benefits your will have a lower monthly payment. With typical Conventional loans, whenever you are above 80% Loan to Value, you will need to get something called PMI, or private mortgage insurance. This PMI is not ever required on any VA loan. Typically Government backed loans have lower rates which can range from 1%-2% lower than a conventional loan. When you combine both of these aspects, a lower rate with no monthly PMI, you will see a huge savings. Below is another chart that will demonstrate just how much money these two aspects can save you.
|Rate Reduction and PMI Savings|
|Loan Amount||1% Reduction||PMI Savings||Monthly Savings|
*These Estimates are based on a purchase where the borrower puts $0 down and has a 1.0% interest rate deduction.
Q. is VA More Lenient on a Qualification?
The qualification standards for each loan type are very different. Once again, because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans making them easier to obtain. The VA Loan Refinance Specialist A VA Streamline Refinance Makes it Easy A VA streamline is a quick and easy way to lower your rate and save you money. VA Streamline Benefits Include:
- No out-of-pocket costs
- No appraisal required
- No income verification required to qualify
- Lower your rate with only 0.5% funding fee!
If your current interest rate is above 5%, take advantage of all time low interest rates and save money every single month with no out of pocket costs. Lower Your Monthly Payment The Fed has reduced interest rates yet again bringing them down to all-time record lows. Analysts predict a large increase in interest rates in coming months so the time to refinance is now! Whether you are currently in a VA Loan, or are in a Conventional loan, a VA refinance can save you big every single month.