Veteran Home Loan Basics in NC

Getting a Veteran Home Loan in NC does have its advantages.  Yet it’s surprising to us how many Veteran’s do not disclose their service when they apply for a mortgage!  If you qualify for this type of loan,  and you are looking for a home in an area that might qualify for USDA Home Loan financing (for instance) we are going to look at the numbers with the Veteran’s Administration’s backing and then without it.

The Department of Veteran’s Affairs does not MAKE these mortgage loans – just like HUD does not make FHA Loans, they simply insure the Lender against default.  Right now, almost 65% of all home loans closed in the US have some sort of Government backing – making them more competitively priced by the Banks!

The question to ask, then, is what a VA loan is?  This type of loan can offer you a guaranteed status, which means that to the lender you will not default on the loan. This provides more security to the lender and therefore they are more likely to offer you a lower rate. These loans are only given to those that have served in the military in some form, or are or were reservists or members of what is called the Public Health Service. There are very restrictive requirements for who is eligible for these loans, which we can help you determine when we talk!

VA Home Loan Benefits

There are several benefits offered through these loans, all of which make the VA mortgage loan one of the best types on the market today. Those benefits include the following:

• There are no PMI payments with these VA home loans. PMI, or Private Mortgage Insurance, is required by most Banks, and is paid on a monthly basis.  USDA Home Loan and FHA mortgages (for instance) both have monthly “Default” insurance charges, and with VA loans, you don’t have to pay this!  In fact, the Veteran’s Administration made the Guarantee Fee for Veteran Home Loans cheaper last year! (More Information on the Rates)
  

• There is no down payment required at the time of purchase for your home. This really opens the door for most borrowers because they do not have to have the estimated 20 percent of the home’s value in cash to pay down.  We find that today – many Sellers are willing to cover most of the Veteran’s cost in purchasing the home, and often times  – the Veteran can purchase a home with as little as $500 out-of-pocket!

• The VA Mortgage Loan Underwriting Guidelines are fairly straight forward.  Active duty Service Members need to remember that there are some important things to know about the way underwriters are counting BAH and BAS pay.

• A Veteran Home Loan “theoretically” is not under ANY credit Score requirements – however, the truth of the matter is that a VA Loan Underwriter is going to want a score of somewhere close to 640.  If you don’t have this – we can help.  I can’t tell you how many people we work with over the months to get their scores up so they can purchase a home!  These are the main 4 things to concentrate on, but before you pay something off, or add another credit card – let us put your credit through the simulator and see exactly what will give you the most benefit!

The federal government strictly controls these loans including which lenders can offer them. Most are able to do so, but they must follow strict guidelines to maintain eligibility. More so, the federal government also regulates just how much can be charged to you as closing costs as well as origination fees. These aspects also lower your costs in purchasing the home.

If you’ve already used your VA Eligibility – you might need to give us some details about that original mortgage before we can determine if you can use your VA Mortgage Benefits again.  If you don’t have your Certificate of Eligibility, we can help you get that!

The VA mortgage loan program is an ideal choice for many Americans that want to purchase their first or additional homes up to $424,100… and for those that want to purchase a home OVER $424,100 – you might find that the program gives you benefits too!

Call Steve Thorne, NC Mortgage Expert at 919-649-5058.  We love working with Veteran’s, and we appreciate your service!  Please note that we offer today’s best rates – but we do not make loans on manufactured housing in NC.