Big VA Loans with No Down Payment
Posted March 8, 2020 in Real Estate Trends
It always surprises me that many veterans don’t realize that their Department of Veterans Affairs guaranteed mortgage benefit is theirs for a lifetime. Veterans can use the Veterans Affairs (VA) loan program every time they buy a primary residence and also to refinance. It’s not just for the first home purchased, but for every home a veteran ever purchases.
The big news beginning in January of this year is that borrowers using VA loans can borrow any amount of money with no down payment provided that they qualify for the loan. Previous to January, there were capped amounts on the size of the VA loan. Because of those limits, many veterans had to take out a loan for the difference in what the VA loan would cover and the cost of the housing or choose a home that was less than the amount of the cap. Today, if a home costs $750,000 and the veteran can afford the payment of a $750,000 home, then the VA will guarantee the loan with no down payment. If the cost is $950,000, a veteran can get a guaranteed loan; there is no cap and no matter to the cost of the home.
If a veteran purchased a home before this year and didn’t use the VA loan benefit, the veteran can now refinance any amount without any additional monies due and lower the finance rate to the VA loan rate of 3.25%. Loans can take two or three days longer to process than conventional loans; however, it can reduce monthly payments greatly in comparison to conventional loans.
There are many loans available for many different kinds of home buyers whether the buyer is a veteran or not. As always, be sure to interview the person you choose to help you obtain financing. For me and for Peak Mortgage, it is the long-term relationship that builds the community. We’ve been in the Vancouver community as a neighbor for a long time. We’re here to make a difference.
Peak Mortgage is your local, experienced source for home mortgaging help. Call or email MPattullo@PeakMtg.com
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