Although there are a few options for veterans qualifying for VA home loan programs, VA mortgage loans for home purchases are probably the most well-known and most commonly utilized, and for good reason. Eligible veterans VA mortgage loans are a benefit of service designed to make home buying easier and more affordable for them.
What Are VA Mortgage Loans?
VA mortgage loans are more accurately described as VA insured mortgage loans because in actuality that is what they are. The federal government and/or the Veteran’s Administration does not make direct loans to veterans; instead, the federal government provides insurance for VA mortgage loans that decrease the risk of the loan, thus allowing lenders to offer better terms. They also grant VA mortgage loans to qualified veteran borrowers without requiring a down payment or requiring Private Mortgage Insurance to be paid on the loan.
The first thing to understand as a veteran interested in exercising your benefits is that your loan is still funded by a private bank or mortgage company, just as it would be if you were to take a traditional home loan; in this way the basic mortgage product is not very different. The difference is that the government guarantees payment on your loan should you default, and so lenders will be more willing to give you better rates and terms than you would qualify for on your own as a private citizen.
Why is it important to know this? Because it is important to know that as a veteran with this eligibility you should not settle for a lesser home loan. But even more importantly it is important to know this because it is important to know that the government only insures your loan, it does not dictate your terms. Different VA mortgage lenders will still offer different terms and interest rates, just like if you were shopping for a traditional home loan.
Practically speaking, this means that the first loan you are approved for may or may not be your best deal and you should seek the best VA mortgage loan terms you can. It also means that no matter where you live in the U.S. there are good and better VA mortgage lenders, so you should shop for one with that has your best interests in mind. However, know that that lender does not necessarily have to reside in your state—you might look for an Alaska VA mortgage lender online and find that the best professional will work from Colorado. The key to success is to work with an experienced lender that offers good terms and excellent customer service.
What VA Mortgage Loan Services Do Lenders Offer?
The other piece in understanding VA mortgage loans is knowing that there are a number of options available to you. The job of the VA lender is to work with you to explore those options and to walk you through the process seamlessly. Again, this does not necessarily mean the best professional will be local to you. For example, that Colorado or Alaska VA mortgage lender could be just as qualified (or more qualified) to walk you through the Pennsylvania VA home loan process. The process is based on federal regulations, so the same basic rules that apply for an Alaska VA mortgage lender will apply for the one managing the Pennsylvania VA home loan process, and so on.
Regardless of where you live and what your mortgage shopping needs are, if you are an eligible veteran, or think you might be, you should look into VA mortgages before making any final decisions. You might just find that VA insured mortgage loans offer just what you are looking for, including a VA home loan refinance. The tools and resources of VA mortgage lenders can help you determine whether a VA mortgage or VA home loan refinance might be best, and you can use their tools (like the VA mortgage calculators) to help you compare and contrast programs and terms.
There really is a lot to know about VA mortgage loans, but you do not have to try to navigate the waters alone. There are excellent VA mortgage experts and specialists that can clarify all your options and possibilities, and help you evaluate the benefits of VA mortgage loans so that you can be assured you are entering into the best home mortgage program with the most affordability for you.
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Help answer the question about mortgage loan
What is the best type of mortgage loan for the lowest monthly payment?30 year fixed? 2/1 ARM? I need a loan with no PMI and low points and the lowest possible mortgage payment a month. What Im working with:
Credit score 600
Annual assets (Salary) 34500
Monthly Debt: 70
House loan amount: 106000
Available to put towards closing costs (Including down payment) 12000
Any ideas?
Good question and I know you are not the only on in that boat. The VA loan guarantee is an VET entitlement through a certificate of eligibility issued from the VA when you apply. Once used, the house will have to be either paid off, sold or refinanced (not use VA eligibility on new loan) for you to get your entitlement back. So, worst case is a loan still exists on the home and you can not use your VA certificate until it is removed. Best case, house sold and you have your eligibility back.
Finding out about whether ex still has house, sold, foreclosed, etc. is easy. Public records. In my state, I can type in last name or address and get property deed which has current owners, value, etc. Call a local real estate person to look it up for you if need be. If house foreclosed, you may have problems if sold for less that what was owed. This would be my first step. If ex still has house, only option is to get her to sell/refinance to remove VA cetificate so you can get it back.
I also am vet, have used VA loan a few times. But lately, other loans are just as competitive and even better than VA. I bought my current house without VA because it was a better finance deal. First use of VA is good deal, multilpe use of VA requires higher origination fee 3 percent (last I heard)- so it becomes costly if used more than once.The only thing VA helps with is down payment so if that's your problem – than that may be the right choice. Mortgage brokers can give you all kinds of different options. VA is just one option among many. Truthfully, the VA guarantees a portion of your loan to the bank so there is less risk for the bank making down payment less. That's all it is – the VA does not loan the $$.
The VA has your answers as to whether you still have your eligibility so be patient and try to get through. Browse their website – has alot of good valuable information.
If you still do not have your certificate – don't worry. There are many other options, many better too. My concern would be whether husband is still on deed and loan and is still responsible. Late/non-payment by ex will hurt him if still on loan. My ex signed off on the deed and I had to refinace so she no longer owned it or was financially responsible for it . Hopefully you have some kind of the same arrangement.
VA phone # is 1-800-please-hold! But they will answer. To save you time, make sure your husband calls. If they have no record of new marriage, they will not release any info to you. VET calling is the best way and they tend to move faster when we call personally.
As you can see, every bank and loan officer loves VA loans. I agree, although I am not a loan officer anymore. Check Wells Fargo (my former employer) and be ready to provide all of your paperwork. But, rate shop without a hit to your credit because everyone is having problems finding good customers…like you :}. Try your credit union, I want to say that their rates are always better.
I wish you the best! Buying a home is always a good investment.
If you have your Dad's old Military ID or if you have a form called a DD214 then it should be very easy to track down any benefits your Mother may have. Even without them I bet if you call the VA they can help you track the stuff down.
Several years ago I tracked the same sort of stuff down for my Dad. He was still alive but had no idea where any of his data was. The military tried to find it at a main place in St Louis but could not find it and then later found it in a repository in Washington DC. It took about three months. But if we had had the military ID they could have found it in very short order.
The Department of Veterans Affairs (VA) reported the issuance of mortgage loan guaranties on 91,200 single-family properties in the fourth quarter of 2002, up 27 percent from the previous quarter and up 14 percent from the fourth quarter of 2001. VA loan guaranties rose 17 percent to 328,100 in 2002. These are the latest numbers published by the Department of Veterans Affairs, Department of Housing and Urban Development, and the Census Bureau.
i doubt big bulls of the lot will give you loans, but i am sure certain small time lenders who have actually applied their brains are going to lend you some wihtout much complications because you have a good fico score.
Below is the link to the VA Government website, it answers a lot of questions that you may have accurately and you can get it all in one shot. Browse the site it has all the info you would need.
Pre-Loan Frequently Asked Questions
General questions about VA loans that may arise BEFORE you get one
http://www.homeloans.va.gov/faqpreln.htm
Also you do have to select a bank or mortgage broker yourself. Make sure to shop around in your own locale area for the loan. Good Luck!
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it."