Buying a Home with a VA Loan?
Get Pre-Qualified and Find Your Dream Home
Today!
Buying
a Home with VA Loan?
I would like to personally thank ALL of our Service Members, Veterans and
eligible surviving spouses for your sacrifice to our country! I'm
always grateful for the opportunity to help military families buy & sell
homes in the Denver Metropolitan area. I work with retired military
buyers and sellers & assist military families who are relocating or transitioning from active-service to various civilian
employment with defense contractors such as Lockheed Martin, General
Dynamics, Northrop Grumman, Boeing & Raytheon. I consider it an
honor and a privilege to provide expert, professional real estate services
to military families and I look forward to help you buy or sell a home.
Anthony Rael, your VA Military-friendly Realtor with RE/MAX
Alliance - 303-520-3179
As an experienced VA/Military-friendly Denver
Realtor with RE/MAX Alliance, I am happy to recommend local VA Mortgage
Lenders who understand the VA mortgage loan process and will work
hard to secure the best VA loan possible. Since VA guarantees a
portion of the loan, this enables the mortgage lender to provide you with
more favorable terms (saving you thousands of dollars!).
What is a VA
Guaranteed Home Loan?
VA guaranteed loans are made by private lenders, such as banks,
savings & loans, or mortgage companies to eligible veterans for the
purchase of a home which must be for their own personal occupancy. The
guaranty means the lender is protected against loss if you fail to repay
the loan. The guaranty replaces the protection the lender normally
receives by requiring a down payment allowing you to obtain favorable
financing terms.
|
VA Loan vs.
Traditional Mortgages
Military homebuyers have access
to one of the most unique and powerful loan programs ever
created. See how the VA Loan compares to a traditional home
mortgage: |
|
VA Loans |
Conventional
Loans |
0% Down
(for qualified
borrowers)
VA Loans are among the last 0% down home loans
available on the market today. |
Up to 20% Down
Conventional loans generally
require down payments that can reach up to 20% to secure a
home loan, pushing them out of reach for many homebuyers. |
|
No PMI
Since VA Loans are government
backed, banks do not require you to buy Private Mortgage
Insurance (PMI). |
PMI Required
Private Mortgage Insurance is a
requirement for borrowers who finance more than 80% of their
home's value, tacking on additional monthly expenses. |
|
Competitive Interest Rates
The VA guaranty gives lenders a greater degree
of safety and flexibility, which typically means a more competitive rate
than non-VA loans. |
Increased Risk for Lenders
Without government backing, banks are taking on
more risk which, in turn, can result in a less-competitive interest rate on
your home loan. |
|
Easier to Qualify
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. |
Standard Qualification
Procedures
Conventional options hold stricter
qualification procedures that can put homeownership out of reach for some
homebuyers. |
Benefits
Purchase Loans help you purchase a home at a
competitive interest rate often without requiring a down payment or
private mortgage insurance. Cash Out Refinance loans allow you to take
cash out of your home equity to take care of concerns like paying off
debt, funding school, or making home improvements.
Interest Rate Reduction
Refinance Loan (IRRRL): also called the Streamline Refinance Loan
can help you obtain a lower interest rate by refinancing your existing VA
loan.
Native American Direct Loan (NADL)
Program: helps eligible Native American Veterans finance the
purchase, construction, or improvement of homes on Federal Trust Land, or
reduce the interest rate on a VA loan.
Adapted Housing Grants:
help Veterans with a permanent and total service-connected disability
purchase or build an adapted home or to modify an existing home to account
for their disability.
Eligibility
Requirements
The length of your service or service commitment and/or duty status may
determine your eligibility for specific home loan benefits.
Purchase Loans and Cash-Out
Refinance: VA-guaranteed loans are available for homes for your own
personal occupancy. To be eligible, you must have a good credit score,
sufficient income, a valid Certificate of Eligibility (COE), and meet
certain service requirements.
Interest Rate Reduction
Refinance Loan (IRRRL): The IRRRL is a "VA to VA" loan, meaning it
can only be applied to refinance an existing VA loan. An IRRRL can be done
only if you have already used your eligibility for a VA loan on the
property you intend to refinance. A new Certificate of Eligibility (COE) is not
required. You may take your Certificate of Eligibility to show the prior
use of your entitlement.
Native American Direct Loan (NADL)
Program: The NADL program helps Native American Veterans purchase,
construct, improve, or re-finance a home on Native American trust lands.
Your tribal organization must participate in the VA direct loan program.
You must have a valid Certificate of Eligibility (COE) and meet certain
service requirements.
Adapted Housing Grants:
VA helps Veterans with certain total and permanent disabilities related to
your military service obtain suitable housing with either a Specially
Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant.
You can apply for an SAH or SHA grant by either downloading and completing
VA Form 26-4555 (PDF) and submitting it to your nearest Regional Loan
Center, or completing the online application.
VA Funding Fee
The VA Funding Fee is paid directly to the Department of
Veteran's Affairs and is the reason they can guarantee this
no-money-down loan program. This fee is paid so that VA eligible
borrowers can enjoy loan benefits such as $0 down financing and no PMI
payments.
VA Funding Fee Chart
The Funding Fee is calculated by looking
at 5 different factors: Loan amount, loan type (Purchase or Refinance),
type of service, down payment (if any) and prior VA loan use. Take a
look at the charts below to see how the VA
Funding Fee varies based on these
factors:
|
|
Purchase - First Time Use |
|
Down Payment |
Active Duty/Retired |
Guard/Reserve |
|
$0 Down |
2.15% |
2.40% |
|
5-10% Down |
1.50% |
1.75% |
|
10% or More |
1.25% |
1.50% |
|
|
Purchase - Additional
Use |
|
VA Usage |
Active Duty/Retired |
Guard/Reserve |
|
$0 Down |
3.30% |
3.30% |
|
5-10% Down |
1.50% |
1.75% |
|
10% or More |
1.25% |
1.50% |
|
|
Cashout Refinance |
|
VA Usage |
Active Duty/Retired |
Guard/Reserve |
|
1st Time Use |
2.15% |
2.40% |
|
Additional Use |
3.30% |
3.30% |
|
|
IRRL (Interest Rate
Reduction Loan) |
|
VA Usage |
Active Duty/Retired |
Guard/Reserve |
|
1st Time Use |
0.5% |
0.5% |
|
Additional Use |
0.5% |
0.5% |
How the Funding Fee is Paid
The funding fee
does NOT need to be 'paid' separately and is typically rolled
into the loan. This is a big benefit to a VA borrower who looking to
take advantage of the $0 down benefit of the VA loan. Not only will you
not need to put any money down, but you can finance the VA funding fee
as well. It will be added to the total loan.
Do you Qualify for a VA Funding Fee Exemption?
Borrowers are exempt from paying the
funding fee if they receive any disability payments from the VA or are
considered at least 10% disabled. Your VA mortgage lender will
work you to determine if you qualify for the funding fee exemption
|
Frequently Asked Questions
How do I get a Certificate of Eligibility (COE)?
An eligible veteran can now obtain a COE
online at www.ebenefits.va.gov
Does my Certificate of Eligibility (COE) have a
time frame during which it needs to be used?
No, your Certificate of Eligibility will never expire. The only
exception is for those veterans who obtained their certificate while
they were on active duty. That veteran would need to obtain a new
Certificate of Eligibility after he or she has been discharged.
What does it mean if I have $36,000 listed as my
entitlement available on my Certificate of Eligibility (COE)?
The $36,000 listed on your COE is your
basic entitlement amount. This is not used as a down payment toward your
mortgage; it is the amount available for the guaranty of your mortgage.
For loans in excess of $144,000 to purchase or construct a home,
additional entitlement up to an amount equal to 25 percent of the
Freddie Mac conforming loan limit for a single family home may be
available. This loan limit changes yearly. This means that qualified
veterans could get a no down payment purchase loan of up to $417,000,
effective January 1, 2006.
Can I use my VA home loan benefit more than once?
Yes, a veteran’s entitlement can be restored once the veteran has
disposed of the property and paid the loan in full. This will allow the
veteran to use his or her VA home loan benefit again.
Can I get a VA loan with someone who is not my
spouse?
A veteran can purchase a home with any
individual they choose, but the VA will only guarantee the portion of
the loan attributed to the veteran and a spouse. For example, if the
veteran intends to purchase a home with a fiancée prior to marriage and
will share the same interest in the property, VA would guarantee half of
the loan.
|
Need to pre-qualify for a
VA Loan?
Contact Anthony Rael with RE/MAX Alliance at (303)
520-3179 or
send a direct message online and I will connect you to one of
my top-notch VA Mortgage Loan Officers that's best suited to your
specific situation. You can also reach out to
either one or both of the top local VA lenders I have had
the pleasure working with - just let them know "Ants sent ya'".
Other VA Resources:
VA Office in Denver, Colorado
United States
Department of Veterans Affairs
Federal Benefits for Veterans Booklet
I would like to personally thank ALL of our Service Members, Veterans and
eligible surviving spouses for your sacrifice to our country! I'm
always grateful for the opportunity to help military families buy & sell
homes in the Denver Metropolitan area. I work with retired military
buyers and sellers & assist military families who are relocating or transitioning from active-service to various civilian
employment with defense contractors such as Lockheed Martin, General
Dynamics, Northrop Grumman, Boeing & Raytheon. I consider it an
honor and a privilege to provide expert, professional real estate services
to military families and I look forward to help you buy or sell a home.
If you have any questions relating to
pre-qualifying for VA Home Mortgage and finding a great home in the Denver
metro area, call Anthony Rael at (303) 520-3179
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Anthony Rael |
REMAX Alliance -
Arvada | 6465 Greenwood Plaza Blvd, #280 |
Greenwood Village, CO 80111 | 303.520.3179
 
   
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