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February 2nd, 2008
Late Payment History
March 3rd, 2008
Investment Property Loans
April 15th, 2008
Debt to Income Ratio
May 20th, 2008
Selling a VA Home
Are you part of the VA?
No, we are not the Veteran’s Administration. The VA is not a lender; they will insure the the l oan which is why a lender is able to give a great loan to the veterans. We merely provide the information regardng VA loans and connect you with a nationwide VA lender who can give you specific information about interest rates and available options.Why should I ask for more information through this website?
Varefinance.com partners with a nationwide approved VA lender. They should be able to answer 99% of any questions you might have.What is a COE? Where can I get it?
COE stands for Certificate of Eligibility. If you are buying a house you will need to have this available to show you are eligible for the VA loan. If you need help getting a copy of your COE, mention that when you ask for a no obligation quote.Do I need my certificate of eligibility again for a streamlined refinance?
No, since you obviously had it when you got your original VA loan, there is no need to provide your certificate again.
Why should I get a VA loan versus a conventional loan?
The VA loan is a program set up to help active duty and retired military personnel into homes. They will give you 100% financing on a home at a very competitive rate without having to pay mortgage insurance. With the current "mortgage meltdown" you may have heard about in the news, there really isn't any other great options for 100% financing. It's truly the best way to obtain 100% financing in these volatile days.
What is the VA funding fee?
VA funding fee is a fee added to your loan that goes to the Veterans Administration. This essentially is the insurance premium the VA wants to back your loan which is how you can obtain a great financing option. If you are/were active duty during your first use of a VA loan, your funding fee is 2.15% of the base loan amount. For each additional use it is 3.3%.I am a disabled veteran. Do I need to pay the VA funding fee?
If you are rated 10% disabled or higher you will be exempt from paying the VA funding fee. If this is the case, be sure to inform your lender so you won't be charged at closing.How do interest rates change?
Interest rates can be very volatile and can be difficult to predict in the long term. Generally, as the US Treasury Bonds price increases rates will decrease, and vice versa. Interest rates are updated every morning, and sometimes throughout the day if the financial markets are changing.Does the VA control their interest rates?
No, the VA does not directly influence interest rates. The rates are set by banks buying and selling mortgage bonds. They change daily just like conventional loans.
I heard the federal reserve lowered the prime rate. How does this affect VA loans?
Not as much as many people think. While it's all related, the federal reserve doesn't directly affect long term rates such as the VA home loan.Does it matter what your credit score is with the VA?
The VA doesn’t put a great amount of emphasis on credit scores, but you will more likely have an easier time with approval the higher the score you have.Do VA loans have closing costs?
Yes, all VA loans have closing costs of some sort. You may be able to find a loan with no lender fees, but you will still have to pay for title work and other 3rd party costs involved with buying a house.What are the benefits of a VA loan?
The VA loan offers 100% financing with no PMI (mortgage insurance). You are eligible for a streamline refinance if rates go down. Be sure to request a quote for a streamline refinance if you want more information about this.Is there a pre-payment penalty on a VA loan?
No, there is no pre-payment penalty on a VA loan. You are allowed to pay off the loan partially or in it's entirety at any time without a penalty.
Can I purchase an empty lot with the VA?
Unfortunately, you cannot. However if you are building a house you can use your VA eligibility for the end financing when the house is nearing completion.Can I use my VA eligibility multiple times?
You can use it more than once. However, generally you can have only one at a time. If you ever foreclose on a house which has a VA loan then you may lose your eligibilty for future use.What is the difference between closing costs and pre-paid items?
Closing costs are costs associated with setting up of the loan, such as underwriting fees, attorney fees, title insurance etc. Pre-paid items are costs associated with the maintenence of your loan such as setting up escrow for taxes and insurance. Pre-paid items also cover any interest your loan will accrue from closing time up until the first day of the following month.What is the fee for a 2nd time use of a VA loan?
3.3 % for 100% financing. If you have 5% to put down then it is only 1.5%. If you are a disabled veteran, each use you always will be exempt.Can I use a co-borrower to help get approved?
The VA is a little old-fashioned in this regard. VA guidelines will only allow a spouse to be a co-signer. If the veteran is unmarried then they would need to be able to get approved on their own.Can I use my parent's eligibility for myself?
No, only the veteran themselves or the surviving spouse of a veteran killed during active duty is eligible for the VA benefits.
How soon should I apply for a VA loan if I do not have a house in mind yet?
You can get pre-approved at any time for your VA mortgage, even without a property or house in mind. Many times this is the best way to go so you can predict any problems before you have a sales contract. This will make the process easier for all parties involved.Can I get an interest-only loan?
The VA loan does not offer an interest-only option at this time. The most popular loan option is the 30 year fixed. It gives the best combination of low payment with a rate that will never change.Can I use my spouse as a co-borrower?
The spouse is the only possible co-borrower allowed on a VA loan. You can use your spouse's income to help approval.Can I use a VA loan to start a business?
If you are looking for a business related loan you should contact the VA directly for more information.Is it possible to have two VA loans at the same time?
Generally no. However, there are unusual circumstances where it may be possible. Ask your lender, or mention this in your free quote application to find out if it will work for you.Is there any obligation or cost to get pre-approved?
No, it does not cost anything. Our partner lender will be happy to assist in seeing if pre-approval is possible for you. There is never any fee or obligation to get pre-approved.
What is the difference between a VA loan and a conventional loan?
In today's changing mortgage market the VA loan is the only legitimate option for 100% financing with a good fixed interest rate. Conventional loans will cap you at 97% financing, and will most likely include mortgage insurance.Are the VA rates better or worse than conventional rates?
It depends on your specific situation. It would be smart to compare both before making a final decision. However, if you have a small or no down payment, most likely the VA loan will be better suited for you.Does my credit score affect my rate?
It does affect your rate on a conventional loan. But the VA doesn't change the rate based on credit score. It does make an easier approval process, however, if you have a clean credit history.Can I get a VA loan after having a bankruptcy?
Yes. You must be at least 1 year out of a Chapter 13 and 2 years out of Chapter 7. You also need to show good payment history following the bankruptcy.Does my veteran home loan entitlement ever end?
It is a lifetime benefit that you are given for military service.My realtor has suggested that VA loans are not worth it. Is this true?
Years ago VA loans were harder to get approved in a timely fashion. But now the approval process is almost identical to a conventional loan. Your realtor isn't doing you any favors if they say to avoid a VA loan no matter what.
How do I find out how much I can afford?
The frst step is to get pre-approved. It's generally a good idea to do this before putting an offer down on a particular house.Do I need to put money down in order to purchase a house with my VA Loan?
No. The VA loan is the only legitimate remaining option to buy a house with no money down.How much can I borrow with my VA Home Loan?
You can borrow 100% up to $417,000 as long as you can approved. On a streamline refinance you can borrow the same amount that you currently owe without needing to go through vigorous underwriting analysis. If you are planning on buying in Alaska or Hawaii then you can go above $417,000.Should I consider an adjustable rate VA loan?
If you believe you will move before the temporary fixed rate term ends, then it would make sense to consider an adjustable rate VA loan. However, if there is a chance you will stay long term in this house, the safe bet would be to stick with a fixed rate.How can I get more information about a VA loan?
You can contact the VA directly or ask a professional loan consultant who specializes in VA loans. You can be connected to someone like this if you fill out the online quote application.
Can I use my Veteran loan benefit to purchase a second home?
No, your VA loan has to be your primary residence.I am currently active duty; can I still receive a VA home loan?
Absolutely! it must be you or your spouse's primary residence, however.
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