If you qualify, in my opinion, the best Home Loan Mortgage for available the purchase of a home is a VA loan. The VA loan is a government sponsored loan that the Department of Veteran Affairs created to allow current and former members of the armed forces and spouses of veterans who died in service or as a result of service (as long as they haven’t re-married) the opportunity to purchase or refinance a home with NO money down using the VA loan.
This program allows qualified veterans to purchase a home as the veteran’s primary residence at 100% of the purchase price with no mortgage insurance or money down. It’s the least that we can do for those who have been willing to protect and service our country. If you are a member of one of the reserve branches of the military you may also be eligible for this great program as well. Qualifying as a member of the reserves is dependant upon how many active duty points and time served in the reserves.
The purchase of a home in Clearfield, Utah with a VA loan can be done with ZERO money down but VA does require an Up Front Mortgage Insurance Premium that is called a funding fee. The funding fee on a VA loan ranges from 0-3.3% of the purchase price of the home depending on the Loan To Value or LTV of the home. The more money that the veteran puts down at closing the lower the funding fee and depending on how disabled a veteran is also has an affect on the percentage of the funding fee. The funding fee can be financed into the loan and in most cases is.
If a veteran has a mortgage on their home other than a VA loan and wants to refinance their existing mortgage to a VA home loan mortgage then the highest Loan To Value that VA guidelines allow on the refinance is 90%. If the veteran currently has a VA loan and wants to refinance their current mortgage and they live in Clinton, Utah then the veteran can refinance 100% of the existing loan.
One of the biggest misconceptions about the VA loan is that it can only be used one time for one purchase. This is not true, if you are eligible for a VA loan and have purchased a home in the past as long as you have sold that home you are can purchase another home which follows same guidelines as the original purchase other than the funding fee may be a different percentage factor than your very first purchase was.
Because the VA loan is a federal government loan like the FHA loan the interest rates are similar. Most Lenders have an adjustment to a VA loan interest rate of anywhere from as little as one eighth (.125) to as much as one quarter (.250) of a percent compared to an FHA loan.
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