The United State VA mortgage was made to help our vets! It allows for veterans to have an easier time accessing home financing through the veterans administration. The guidelines for eligibility change rather frequently however, so you should contact a mortgage professional to see if you are eligible. In general though if you meet one of the following conditions you should qualify: You have served 90 consecutive days of active service during wartime; You have served 181 days of active service during peacetime; You have more than 6 years of service in the National Guard or Reserves; You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
First of all, you may use your VA Mortgage Loan to purchase a home! This will, in some cases, allow a veteran to purchase a home with no money down, or 100% financing. This means that if your home appraises for $300,000, you may be able to secure a loan for the full amount. By comparison, if you were to purchase a home with a conventional mortgage loan, you generally would need at least 5% cash as a down payment in order to be approved. If you compare the VA loan to the FHA mortgage loan, you would still need at least a few percentage points worth of cash in order to get the loan.
After you have obtained a VA mortgage loan, you can refinance it if you want to make changes. For example, if interest rates have dropped since getting the loan you may refinance it to lower the interest rate and keep the other features the same. You may also be able to change the term of the loan such as going from a 30 year to a 15 year to save money on interest or go from a 15 year to a 30 year to save money monthly. You may also be able to change from a fixed rate, to an adjustable hybrid ARM to save money monthly or switch from an ARM to a fixed rate to make sure you have consistent payments. You may qualify for the IRRRL refinance (some people refer to this as a streamline) which may reduce the costs associated with a refinance.
Also, once you have a VA Mortgage Loan and you get to a point where you have some equity built up, you may essentially withdraw your equity from the home via a Cash Out Refinance. The money that you withdraw in this way may be used for many different purposes. For example, you may choose to use the money to improve your home by remodeling a kitchen or bathroom, doing a room addition, or even adding solar panels (which can sometimes allow for savings on electricity). Another scenario would be if you wanted to consolidate your high interest, revolving credit card debt, you may pay them off using a cash out refinance.
The costs associated with a veterans administration home loan will vary from lender to lender, they usually consist of the funding fee, which may be waived in some scenarios as well as closing costs. Most lenders now a days will have no cost options available however. Consult a licensed loan specialist, or mortgage broker today to see what your options are.
First of all, you may use your VA Mortgage Loan to purchase a home! This will, in some cases, allow a veteran to purchase a home with no money down, or 100% financing. This means that if your home appraises for $300,000, you may be able to secure a loan for the full amount. By comparison, if you were to purchase a home with a conventional mortgage loan, you generally would need at least 5% cash as a down payment in order to be approved. If you compare the VA loan to the FHA mortgage loan, you would still need at least a few percentage points worth of cash in order to get the loan.
After you have obtained a VA mortgage loan, you can refinance it if you want to make changes. For example, if interest rates have dropped since getting the loan you may refinance it to lower the interest rate and keep the other features the same. You may also be able to change the term of the loan such as going from a 30 year to a 15 year to save money on interest or go from a 15 year to a 30 year to save money monthly. You may also be able to change from a fixed rate, to an adjustable hybrid ARM to save money monthly or switch from an ARM to a fixed rate to make sure you have consistent payments. You may qualify for the IRRRL refinance (some people refer to this as a streamline) which may reduce the costs associated with a refinance.
Also, once you have a VA Mortgage Loan and you get to a point where you have some equity built up, you may essentially withdraw your equity from the home via a Cash Out Refinance. The money that you withdraw in this way may be used for many different purposes. For example, you may choose to use the money to improve your home by remodeling a kitchen or bathroom, doing a room addition, or even adding solar panels (which can sometimes allow for savings on electricity). Another scenario would be if you wanted to consolidate your high interest, revolving credit card debt, you may pay them off using a cash out refinance.
The costs associated with a veterans administration home loan will vary from lender to lender, they usually consist of the funding fee, which may be waived in some scenarios as well as closing costs. Most lenders now a days will have no cost options available however. Consult a licensed loan specialist, or mortgage broker today to see what your options are.
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