The VA mortgage offers many advantages for Clay County home buyers looking to purchase a home. Below we will discuss some VA loan advantages. Home buyers in Fla, GA, – please contact us at 904-810-2293 with any questions or to learn more.
100 FINANCING – NO DOWNPAYMENT
Nearly all mortgage programs today require you to make a down payment to buy a home. The VA home loan is an exception. Rather than paying 5, 10, 20% or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity, and one of two 100% loans in Florida today.
NO MORTGAGE INSURANCE
If you make a down payment that’s less than 20 percent, you must pay monthly mortgage insurance. At least that’s the case with all other loans. This insurance, referred to as private mortgage insurance (PMI) for a conventional loan or a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan. But a VA loan neither a no down payment nor mortgage insurance. The VA loan is the only mortgage program that doesn’t have monthly mortgage insurance when the buyer’s down payment is less than 20%.
U.S. GOVERNMENT BACKED, GUARANTEE
There’s a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you’re unable to make monthly payments for whatever reason. This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.
ABILITY TO SHOP AND COMPARE
VA loans are not funded or given by the VA. Furthermore, mortgage rates for VA loans aren’t set by the VA itself. Instead, VA loans are offered by VA approved banks, savings-and-loans institutions, credit unions and mortgage lenders – each of which sets its own VA loan rates and fees. This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget. Contact Coast 2 Coast Lending today for a quick detailed quote.
NO PREPAYMENT PENALTY
A VA loan won’t restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early payoff fee no matter within what time frame you decide to sell your home. In addition, there are no restrictions regarding a refinance of your VA loan. You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time.
A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, duplex or other types of properties. Please note at this time we do not permit mobile or manufactured homes. VA can also be used to refinance your existing Clay County mortgage, make repairs or improvement to your home or even make your home more energy efficient. The choices are yours.
EASY TO QUALIFY
Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty. The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.
LOWER CLOSING COSTS
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else. VA also has certain “non allowable” closing costs the home seller must pay.
FUNDING FEE FLEXIBILITY
Like all government backed home loans, the VA loans require a one-time funding fee. This is basically an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don’t need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing. And not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
No lender fees for Veterans and First Responders – $1,500 value! Call Coast 2 Coast with any questions at ph: 904-810-2293 or just fill out the Quick Contact form on the left side of your screen.