The average homebuyer is looking for which type of loan is best for them right now. FHA loans offer low down payments with many other advantages, which we have spoke and written countless mortgage blog articles. Another mortgage, such as the HomeReady loan, allows homebuyers to count up all the income from the household to be valued when being qualified for a mortgage from a lender. For the military home buyers, the VA loan is usually the best home loan that your mortgage lender, NSH Mortgage, can give you.
For Military Home Buyers, What Is The VA Loan?
Congress brought the VA Loan into play in 1944. It was designed particularly to offer long-term financing to American veterans that were eligible, and for their spouses. Throughout the programs history, the VA loan has blossomed. Since 1944 there has been over 20 million VA loans issued. That gives the military home buyers a great place to look when talking to their mortgage lender about what loan is best for them.
Military Home Buyers Will Know In Minutes
Every loan has an application that must be filled out and submitted by the homebuyer. The VA loan has one additional step that can be resolved in minutes. Your mortgage lender, such as NSH Mortgage, will request a Certificate Of Eligibility (COE) from the Veteran Affairs Office, and will usually receive the certificate via email or fax immediately.
The VA determines the status of the eligibility through a general process. You must have served 181 days on active duty during peacetime, or served 90 days on active duty during war. If you have served six years in the Reserves or National Guard, or your spouse has died in the line of duty or from a service-connected disability then you qualify as well.
Veterans that may think they do not meet any of the service requirements should still talk to NSH Mortgage, as they have received COE’s for veterans that have been close to the requirements.
The First Step In Obtaining A Va Loan For Military Home Buyers
No Cash Out Of Pocket For Military Home Buyers
Mortgage lenders are able to offer military home buyers discounted rates for their home loan, because of a strong backed loan by the VA. The most interesting attribute of the VA loan is that it is self-funded. Veterans that receive the VA loan pay fees on their loan, that are called funding fees, which help fund more VA loans for other veterans. Most veterans who are putting 0% down end up paying 2.15% of the home loan. However, not all military home buyers pay the fee, and some can receive rates for as low as 1.25%.
The funding fee is also allowed to be financed, therefore not having to pay cash out of pocket at closing. The overall VA funding fee is very small compared to the savings veterans receive from the VA loan.
Are You Eligible For A VA Loan? Contact Your Florida Mortgage Lender
VA loans provide very small interest rates for veterans and can allow veterans to get into a home quicker than most loans. The underwriting requirements are a bit lower as well, since the home loan is strongly backed by the Veteran Affairs Office.
Contact Us to learn more at NSH Mortgage
A VA Home Loan Through NSH Mortgage Lender In Florida
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