A VA loan is meant to help veterans of the United States Military get easy access to home financing. You will of course need to consult a mortgage specialist in order to determine your eligibility, because guidelines do change often. However, you should be able to qualify for one if you meet one of the following conditions: 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, you may utilize your VA mortgage loan to purchase a home, in this scenario you may sometimes make a home purchase with 100 percent financing. For example, let's say you have your dream home in your crosshairs, but the home appraised for three hundred thousand dollars. With the VA loan, you may be able to take out a loan for the full amount, and not have any down payment. You would still have closing costs associated, but with a conventional loan you would be required, in most scenarios to have at least five percent down, with a FHA loan about three percent down, and you will have mortgage insurance on top of it! With a VA Loan and as of this writing, there is no mortgage insurance required.
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.
The Cash Out Refinance is another highly effective way to utilize your VA mortgage loan and home owner's equity. Many home owners are using the Cash out refinance to pull equity out of their home to do things such as build a deck, remodel, or even add a room or have solar panels installed! Many home owners are also using their home equity to pay off high interest or revolving accounts such as credit cards, this may help you in your quest to become debt free.
Like most refinances, there are sometimes costs associated. In the case of the VA loan you sometimes have a funding fee or closing costs. This funding may be able to be waived in some scenarios though so you should contact a loan specialist or mortgage broker to find out which loan program would best suit your goals and eligibility.
First, you may utilize your VA mortgage loan to purchase a home, in this scenario you may sometimes make a home purchase with 100 percent financing. For example, let's say you have your dream home in your crosshairs, but the home appraised for three hundred thousand dollars. With the VA loan, you may be able to take out a loan for the full amount, and not have any down payment. You would still have closing costs associated, but with a conventional loan you would be required, in most scenarios to have at least five percent down, with a FHA loan about three percent down, and you will have mortgage insurance on top of it! With a VA Loan and as of this writing, there is no mortgage insurance required.
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.
The Cash Out Refinance is another highly effective way to utilize your VA mortgage loan and home owner's equity. Many home owners are using the Cash out refinance to pull equity out of their home to do things such as build a deck, remodel, or even add a room or have solar panels installed! Many home owners are also using their home equity to pay off high interest or revolving accounts such as credit cards, this may help you in your quest to become debt free.
Like most refinances, there are sometimes costs associated. In the case of the VA loan you sometimes have a funding fee or closing costs. This funding may be able to be waived in some scenarios though so you should contact a loan specialist or mortgage broker to find out which loan program would best suit your goals and eligibility.
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