VA Mortgage Loans provide a well-deserved opportunity and beneficial options through which Veterans can become Home Owners by offering many fairly well-known advantages.
But many Veterans do not know or understand that there are additional benefits available through a VA Loan. Mortgage Lender Gene Mundt outlines those VA Loan Benefits below:
Clearing-Up Misconceptions About VA Loans:
Let's Get Veterans and Their Families in Homes
VA Loans, and the benefits that they provide U.S. veterans and their families, are often an under-used and misunderstood type of financing.
While VA loans are made possible through the U.S. Dept. of Veterans Affairs, the loan approval process itself is rarely handled by that government entity. Lenders, such as myself, handle the processing of the loans.
VA loans provide a well-deserved opportunity and beneficial options through which Veterans can become home owners by offering the following (and fairly well-known) key advantages:
- No Down Payment is needed from Qualified Veterans
- No Down Payment is needed, if the Sales Price doesn't exceed the Appraised Value
- There's a "financeable" Funding Fee. (Truly making VA loans a no Down Payment loan!)
- There are minimal requirements demanded of Sellers in terms of home repairs. (Those property requirements are: Safe, sanitary, and sound.)
- Closing Costs (up to 4% of the Sales Price) may be paid by the Seller
- Private Mortgage Insurance is not required
- The VA may provide assistance, should you be unable to make payments on your loan
But I've found that many Veterans do not know or understand that the following additional benefits also exist to them through a VA loan:
- Veterans can use their benefit more than once
- VA Loans can be Assumed
- VA Loans can be used to build a home
- VA Loans allow you to simultaneously purchase and improve a home
- VA Loans can be used by Veterans that are not First-Time Home Buyers
- That spouses of Veterans can also be eligible for VA loans, if they meet certain requirements
- and more ...
That's not to say that VA Loans can't have some specific "guidelines" to be met. They can. Those are:
- Only the Veteran and their Spouse can be on the loan. (Non-married parties are not eligible unless they are a veteran themselves.)
- Maximum loan amount calculations are based upon Veteran's Eligibility and Entitlement
- Income/Job Histories AFTER service ... or while ON Active Duty require screening by an experienced LO.
- Appraisals are done by Approved List of VA Appraisers list, assigned to a local Appraiser by the Veterans Administration. Legal Descriptions are required BEFORE an appraisal can even be ordered (unique to a VA Loan).
- The Appraisal is released to the Mortgage Lender after Receipt and Review by the VA. It remains "Of Record" for a fixed period of time, currently 120 days.
- Buyers/Veterans must have a Certificate of Eligibility, obtained through the VA
The last drawback mentioned above is fairly easily accomplished by Veterans. To obtain a Certificate of Eligibility (or COE), a Veteran must have been discharged under conditions other than dishonorable. They must also meet the service requirements found HERE.
Different categories of eligibility exist, so the nature of your current or past service as a Veteran, they require varying needs to supply proof/evidence during COE application. Info regarding the evidence required of Veterans can be found HERE. Veterans can make actual application for a COE through me (their Mortgage Lender), by mail, or online.
Should a Veteran be in need of further assistance or have questions regarding their eligibility or COE application, they can call the eBenefits Help Desk at: 1.800.983.0937, Monday through Friday. Hours are: 8 am to 8pm EST.
Clearing up commonly held inaccuracies and notions regarding the use of VA Loan benefits is important. Assisting our Veterans and their families in becoming homeowners is one way we can pay them back for all they've provided us. Education is a vital tool in providing that assistance.
* Are you, someone you know, or someone you are representing a U.S. Military Veteran? Contact me. Together we can explore what opportunities and options exist for home financing.
I can be easily found at:Direct: 815.524.2280Cell/Text: 708.921.6331Click HERE for a FREE Mortgage Consultation!eFax: 815.524.2281Ready to Apply for Mortgage?
Regional Manager - Mortgage Lender
American Portfolio Mortgage Corp.
Personal NMLS #216987
NMLS # 175656
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Frederick Griffin, Licensed Florida Real Estate Broker
Tallahassee Florida Metropolitan Area
Disclaimer: Nothing in the above blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.