A Federal VA home loan is a big benefit of your service and veteran owned Mighty Mortgage is dedicated to helping Oregon veterans understand and utilize this benefit for maximum advantage.
Knowledge is power so let's go Mighty on the subject, put aside the marketing and hype, and take a look at some important highlights.
It's true you may not need a down payment, but there will still be expenses for earnest money, home inspections, appraisal, title, property taxes, and insurance to take into account. This is why getting fully briefed and preapproved by a competent VA lender is so important.
It helps to bring some money to the table and gives you a stronger hand in negotiations, however lenders can pay a credit toward your closing costs in exchange for a higher rate, and it's also possible for the seller to pay a credit to cover costs. So negotiate with your lender and the seller accordingly and read the contracts closely to make sure the specific dollar amount of the seller credit appears on the purchase agreement and any lender credits appear on the loan disclosures to avoid ambush down the line.
But even if the lender and seller are covering your costs you may still need to deposit earnest money at the time your offer is accepted, and once the offer is accepted you may be out of pocket for home inspections and an appraisal before you get to closing, where you may then be reunited with the portion of your initial earnest money that wasn't required for closing.
Proper Planning Prevents Poor Performance. For a smooth move put Mighty Mortgage on your home buying team and put decades of exclusive Oregon home loan experience to work for you! Contact us today!
IRRRL Stands for "Interest Rate Reduction Refinance Loan" and it allows the veteran to refinance to a lower rate and payment without an appraisal. Often called a VA Streamline refinance, to qualify the existing loan must have an acceptable payment history, the new interest rate must improve by at least 0.5%, and the "cost" of the loan ( 3rd party costs +/- discount points or lender credits) must be recouped within 36 months.
To see if an IRRRL can save you money, contact Mighty Mortgage today!
Many veterans are surprised to learn the VA isn't the lender on a Federal VA home loan. The VA actually guarantees the repayment of the loan to the lender. In essence Uncle Sam is your co-signer and unless you're receiving a VA benefit or otherwise exempt, he charges the VA Funding fee for the privilege and that fee varies significantly depending on the circumstances.
Now the VA could announce a change at any time but as of this writing: the VA funding fee could be as little as 0.5% for an IRRRL (see below) or as high as 3.6% for a zero down payment purchase for a repeat VA borrower*.
* Repeat VA home buyers subject to the VA funding fee listen up! While a zero down payment purchase may be the only option, if you have the beans you may find it worthwhile to put 5% down, since this reduces the VA's funding from 3.6% to 1.65%. A whopping 1.95% return on a 5% down payment investment.
Oregon Veterans! When it comes to Federal VA home loans veteran owned Mighty Mortgage has your back. Apply now to get started or contact us to learn more.
For qualified borrowers VA Cash out refinances come in two flavors; a) loan amounts up to 90% of the appraised value of the home, and b) up to 100% of the value of the home. The difference being costs jump and qualifications are tighter when the new loan is more than 90% of the appraised value so you might want to discuss that with you lender.
Also be advised: For a Federal VA cash-out refinance, Unless the veteran is exempt from the funding fee, it's arguably the biggest expense ranging from 2.3% to 3.6% of the new loan amount.
Most veterans understand that if you pay off your VA home loan you can get another one but what is not so widely known is that you can have more than one VA home loan outstanding at the same time.
If the first VA loan has a relatively low balance then only some of the available VA Loan guarantee may be tied up on that loan, leaving a "partial eligibility" available for another VA home loan.
Math and other restrictions may apply. Oregon veterans contact Mighty Mortgage to learn more!
Oregon Veterans, Mighty Mortgage salutes you! It's sincerely our honor and privilege to serve the Veteran community and we take it very seriously. Apply your way toady to get started or contact us to learn more.
Need more info? Drop us a line, send an email, text, or pick up the phone and call. Get answers to your home loan questions. Contact us today!
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