A VA loan is a guaranteed loan issued by: • Banks • Savings and loans • Mortgage companies • Private lenders
VA loans are given only to eligible veterans for the purchase of a home they intend to occupy.
You cannot obtain a VA loan if you are planning to purchase a home as a rental property. There are several beneficial reasons why you should apply for a VA loan.
Not only are the financing terms favorable, you are not required to come up with a down payment. This is a great option for those veterans who are first time home buyers.
Private mortgage insurance is also not required.
There is a limit on the amount of closing costs you are required to pay and they may be required to be paid by the seller.
You will not be charged a penalty fee if you decide to pay off your loan early by selling or refinancing.
If you are having a financial hardship, the VA can provide assistance so you do not lose your home. You can also reuse your benefit over and over.
You qualify for a VA loan if you have served 90 consecutive days of service during a war or if you have served 181 days during peace.
You also qualify if you have more than 6 years of service in the Reserves or National Guard.
A VA loan is certainly an attractive option. However, many veterans don't necessarily understand how it works.
Here are 5 frequently asked questions concerning VA loans.
IF I AM ON DISABILITY CAN I STILL APPLY FOR A VA LOAN?
No one wants to lose their disability benefits. If you are a disabled veteran you can still obtain a VA loan and keep your disability benefits.
And, if your disability is service-connected, the funding fee required when obtaining any loan is waived.
Your spouse can also apply for a VA loan if you die due to your service-related disability.
MY SPOUSE IS NOT A VETERAN
CAN THEY STILL BE A CO-BORROWER ON MY VA LOAN?
Absolutely. You would especially want to add them as a co-borrower if they have good credit.
Both of your credit scores will be taken into consideration to give you the best interest rate possible.
If your spouse works, both incomes will be considered which increases your ability to qualify for a higher loan amount.
If your co-borrower is not your spouse they must be a veteran to receive the 25% guarantee.
If they are not a veteran or a spouse your guarantee drops to only 12.5%.
I'VE HAD A VA LOAN IN THE PAST
CAN I STILL RECEIVE MY BENEFIT IN PURCHASING ANOTHER HOME?
You can use your benefit one more time to purchase another home with your VA loan.
The stipulation is, you must have paid off your current VA loan and still own the same property.
If you have paid off the current VA loan and no longer own your property, you can reuse your benefit as many times as you like.
WHAT DO I NEED TO SUBMIT TO START THE QUALIFICATION PROCESS?
You are required to provide a Certificate of Eligibility.
You can apply for one by completing the necessary forms online.
Just like any loan, you will have to submit your:
• Pay stubs • Complete a loan application
• Provide Bank statements • Employment verification • Obtain a credit report
I RECEIVE BASIC ALLOWANCE FOR HOUSING
CAN I USE THAT INCOME TO QUALIFY FOR A VA LOAN?
Your Basic Allowance for Housing counts as income that helps your debt-to-ratio income.
Keeping a low debt-to-income ratio is what lenders look for to decide if you qualify for any loan.
Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.
Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com
VA Loans for Vets 7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com