A Veteran is usually better off using their VA Home Loan Benefit in NC, as opposed to taking tons of cash, and going with a Conventional mortgage loan. Many Veterans don’t realize that even if you’ve used your VA benefits to purchase a home before, those benefits may have been re-instated. It’s time to look at your options and consider Veteran Home Loans versus Conventional Loans.
To have Veteran Home Loan benefits re-instated, the home must have been sold, with the loan paid off – or assumed by another Veteran who replaced your Eligibility with theirs.
Here are some of the benefits of Veteran Home Loans versus Conventional Loans:
VA Home LoanConventional Loan
The 2014 maximum VA Loan with no down payment required is $417,000 in North Carolina.
As we’re written about before, qualified VA mortgage loan borrowers have two layers of loan entitlement. The first is $36,000, and the second is $68,250 for a total of $104,250. Since the VA pledges to guaranty about a quarter of the loan amount, the most VA borrowers can obtain without putting money down in most parts of the country is $417,000 ($104,250 x 4).
This means that if a Veteran wants to borrow more than $417,000 you only need to make a down payment equal to 25% of the amount OVER $417,000. So, for instance, if you are buying a $500,000 home, you would make a down payment of $20,750 – which is far less than the minimum required for a Jumbo Conventional Loan!
If you are considering a VA Home Loan in NC , or you have questions about Veteran Home Loans versus Conventional Loans – please call Steve and Eleanor Thorne 919-649-5058, we have the best mortgage rates and the lowest fees available!