So I went to a VA Seminar, hosted by Military Home Programs, to re-up my knowledge on VA home loans. Andrew Paul and Ken Bates did a wonderful job detailing the benefits of VA home loans and explaining the new forms and addendum associated with VA financing.
VA financing is an extremely useful tool for military members, past and present. It can save them a lot of money. I will touch upon the main points that Andrew and Ken brought up during the seminar to give an overview of the VA loan program.
More than 29 million veterans and service personnel are eligible for VA financing.
A VA loan is a loan guaranteed by the United States Department of Veteran Affairs. This guaranty protects the lender against loss if payments are not made, allowing lenders to give more favorable terms to the veterans.
However, the maximum VA loan guarantee varies by county. In San Diego County, the maximum VA loan amount is $518,750 with Zero Down Payment.
Eligibility for VA loans basically applies to anyone that has completed military service. This eligibility does not expire, meaning that widows can utilize the eligibility of their spouses, and that the VA loan is re-usable. To be eligible, Active Duty members need a minimum of 90 continuous days or 181 during peacetime and Active Reserve or National Guard need 6 years in selected reserves.
Active Duty members need a minimum of 90 continuous days or 181 during peacetime and Active Reserve or National Guard need 6 years in selected reserves.
Here is a list of benefits of VA loans:
Here is a list of VA home loan requirements:
If you are disabled due to a service-related injury (and are receiving military disability pay currently), your funding fee is waived and you pay nothing anytime you use a VA loan.
Below are two examples from Andrew and Ken at Military Home Programs:
Alesha W. (Single Mom, Closed on 4/21/08 for $237,000):
|633 FICO Score||Yes||No|
|Zero Down Payment||Yes||No|
|30 year fixed rate:||6.0%||N/A|
It was better for her to own her own home and live off base!
Greg & Mary P. (Closed on 2/03/09 for $1,375,500 purchase price):
|799 FICO Score||Yes||Yes|
|30 year fixed rate:||5.625%||7%|
They saved nearly $1,000/month over a regular Jumbo loan!
So as you can see, if you are eligible for a VA loan, you would be wise to take advantage of it. These are just a few among many examples where VA financing saved buyers a lot of money.
Hopefully this gave you a better insight to what VA financing is and what you need to utilize it. If you have any questions or concerns feel free to Contact Park Life Real Estate and we will get back to you as soon as we can.