What is a VA loan?
A VA Loan is a type of loan which is designed to offer long-term financing to veterans who are seeking to purchase property or refinance an existing mortgage. VA mortgage loans are issued by federally qualified brokers and are guaranteed by the U.S. Veteran’s Administration. For Veterans seeking this type of financial assistance, this can be the most extensive program available to them.
What are the benefits of a VA loan?
- The main benefit of a VA loan is that they provide financing up to 100% of the home’s value without monthly mortgage insurance. Despite this, there are some credit and loan limit overlays depending on your specific scenario and use of funds.
- Additional benefits of a VA Loan are:
- 30 year fixed rates lower than other types of financing.
- Fico’s as low as 500 with a good 2 year payment history.
- Cash out for debt consolidation up to 100% of the home value as long as this reduces your monthly payment obligations.
- Cash out up to 90% of the home value.
- Refinancing options available every 210 days to reduce interest rates without an appraisal or income requirements (IRRL).
- NO prepayment penalties. VA borrowers can pay off a loan early without any financial penalties
Who qualifies for a VA loan? (all options require an honorable discharge).
- Veteran has served 90 consecutive days of active service during wartime, OR
- Veteran has served 181 days of active service during peacetime, OR
- Veteran has 6 years of service in the Reserves or National Guard, OR
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
Should I use a VA loan to pay off debt?
This depends on your individual scenario which we at Independent Home Finance, Inc can review in a matter of minutes. Typically utilizing a VA loan to eliminate debt is a good option as long as you are reducing your monthly debt obligations and the debt was incurred due to an unforeseen financial emergency.
What are the loan limits for a VA loan?
VA will allow loans up to $2,000,000. Brokers do have overlays depending on loan to value and credit worthiness.
Why work with Independent Home Finance, Inc for your VA Loan needs?
We are very knowledgeable about VA Loans through personal experience. Our team is happy to assist any fellow veteran with all the questions they may have about this process and how it could be beneficial to their specific circumstance.
What kind of documentation is needed to get started?
- Loan Application which can be taken over the phone in 15 minutes or via this link https://form1003.our220.com/index.php/application/create?domainName=www.timkylelends.com
- Current Mortgage Statement or Purchase agreement.
- Homeowners Insurance Declarations Page
- Driver’s License and Social Security Card – front and back
- Current pay stubs covering the last 30 days
- Current W2’s covering the last two years.
- Current tax returns covering the last two years.
- DD214 and/or certificate of eligibility.