Unlocking the Full Potential of VA Home Loans

Have you ever pondered the existence of loans exclusively designed for veterans and active military personnel? The VA mortgage loans, guaranteed by the U.S. Department of Veterans Affairs, were formulated to ensure housing affordability for eligible U.S. veterans and military members. This loan variant extends to veterans, reservists, active-duty personnel, and surviving spouses of veterans with full entitlement. Thanks to these benefits, eligible veterans may be able to purchase a home without the need for a down payment or private mortgage insurance. Let's delve into the intricate details of this exceptional opportunity.

Perks of a VA Loan

Perhaps the most significant advantage of a VA loan for many borrowers lies in the non-necessity of a down payment. There are only a few types of loans that waive the requirement for a down payment, and VA loans take a prideful place among them. Additionally, there's no obligation to pay Private Mortgage Insurance (PMI) or orchestrate a "piggyback" mortgage to cover the down payment. Another substantial advantage of a VA home loan is the competitive interest rate it offers. With many loans, a lower down payment leads to a higher interest rate, but VA loans defy this norm! Furthermore, the versatility of a VA home loan goes beyond just purchasing a home. If you qualify, you can use this loan to:

• Purchase a home or residential condominium
• Construct a home
• Refurbish, alter, or enhance a home
• Refinance an existing home loan
• Buy and improve a manufactured home lot
• Implement energy-efficient improvements to a home
• Simultaneously purchase and upgrade a home with energy-efficient improvements
• Refinance an existing VA loan to lower the interest rate

Understanding Non-Allowable VA Fees

Non-allowable VA fees refer to costs that VA buyers are legally exempted from paying, which simplifies the home buying process for qualifying veterans. These fees typically include:

• Attorney fees
• Commissions or brokerage fees
• Escrow, settlement, or closing fees
• Closing protection letter
• Underwriting or processing fees
• Lock-in or application fees
• Appraisals requested by anyone but the buyer
• Fees for a flood zone determination by the lender or appraiser

Please note that these fees do not necessarily fall on the home seller. Other parties involved in the loan, such as the lender or a real estate agent, may cover these expenses. Furthermore, VA buyers can negotiate with the seller to bear some or all of their closing costs.

Exploring Seller Concessions

In some instances, VA homebuyers can request the seller to cover costs associated with the VA loan on their behalf. The VA caps seller concessions at 4% of the loan amount and these typically include:

• Prepayment of taxes and insurance on the home
• Interest rate buydowns
• The buyer's VA funding fee
• Settlement of judgments or credit balances on the buyer's behalf
• Gifts (e.g., appliances)

VA Loan Solutions with CrossCountry Mortgage

At CrossCountry Mortgage, we proffer a wide array of VA loan solutions tailored to meet diverse needs. For more insights on the ideal loan for your financial profile, consult with a licensed Mortgage Advisor. Our range of solutions includes:

• Purchase: VA purchase loans allow veterans to buy a home without a down payment or monthly mortgage insurance.
• Refinance: A VA refinance loan can be used to refinance an existing loan or multiple loans.
• IRRRL (Interest Rate Reduction Refinance Loan): This streamlined loan is for refinancing a property on which you've already used your VA loan eligibility.
• Jumbo: This loan is for purchasing or refinancing when the loan amount exceeds conventional loan limits.

Are You Eligible?

In recognition of your service, CrossCountry Mortgage offers a $1,111 lender credit on all Federal VA loans initiated from November 1st through November 30th, 2020. Complete the form below to discover more about how a VA home loan could enhance your purchasing power and bring your dream of homeownership within reach.

Please consult with a licensed Mortgage Advisor for more detailed information about VA fees and loan requirements.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.