Disabled veterans have some special benefits when it comes to getting a VA loan… and, you have a special place in our hearts. We so appreciate your service, and we want to help you maximize your disability benefits so that it’s easier to close on your new home in North Carolina!
While it is true that some Disability benefit paperwork can take a while to be processed, you don’t have to wait until your disability benefits go through to get your VA loan started!
VA Loans for Disabled Vets / VA Funding Fees
The VA has it’s own form of PMI – it’s called a Guaranteed Funding Fee. As a Veteran, you are charged this fee based upon having used your VA Benefits to purchase a home before. The fee is WAIVED for Veteran’s who are on Disability. The amount that is waived is solely decided by the VA Office, not us, as the lender.If your benefits are pending, and you want to go ahead with your VA loan, effective with the bill passed by Congress in August of 2012, you will not have a Funding Fee charged, if you have already been “screened” as fully disabled. If your “disability” is not fully determined during screening, it can be REFUNDED back at the point you do get that paperwork. In that situation, it will cause your loan amount to be paid down by the VA.
For example, if your funding fee is $4,200, and your loan amount is $300,000 – then your “total” loan will be $304,200. The $4,200 is added to your loan. Once your disability benefits are approved by the VA, all or a portion of the $4,200 funding fee will be removed from the amount you owe the bank. It will depend on “how much” of a disability the VA shows – meaning are you 35% disabled versus 100%? This will all be in your VA disability paperwork.
If you’ve already made it through the process and are receiving disability compensation from the VA, we can include the compensation as income. Because this income comes to you in “net” form, we will generally be able to gross up your benefits to help you qualify for a loan. You will necessarily need to receive your FIRST check prior to closing in order to qualify.
Many Veteran’s don’t realize that the VA will give you your disability benefits from the date of your discharge. Depending on when that was, it could be nice little savings building up. May of the veterans we talk to decide that they can manage their “new” mortgage easier if they use that lump sum disability check to pay down their loan amount. So instead of borrowing $300,000 on a VA Loan – maybe you only need to borrow $250,000. This can help, especially if you decide to move forward with your loan before your VA disability benefits are finalized, and you’ve received your first check. (might make it easier to qualify)
If you’re trying to take advantage of record low mortgage rates, and you found a DEAL on a house – Don’t Wait! You might not have to wait several more months for your benefits to be processed. VA loans are designed for Vets, and they are especially helpful for disabled veterans. We want to help! Call Steve and Eleanor Thorne 919 649 5058 and let us help you get a VA loan today. Connect with us on Facebook!
I try and answer all questions :)