Giving You Answers To Your Questions About VA Home Loan Myths

Having access to VA home loans (VAHL) is one of the major perks associated with being in the military. VAHL have no or low down payment and offer 100% financing and refinancing on mortgages and flexible credit guidelines. Many new borrowers who qualify for VAHL’s don’t even apply for them because they believe many of the half-truths out there. Because the rules and requirements for VAHL’s are constantly changing, whenever they’re cancelled or modified, word doesn’t always get out. As a result, misconceptions about the VAHL program run rampant. Here are some of the most common myths about the VAHL program debunked Pierces Creek.

You Have to Be on Active Duty to Qualify for a VA Home Loan

You do not have to be on active duty to qualify for a VAHL. Your eligibility for a VAHL is determined by your current and past service. Simply put, veterans who have served at least six months between 1964 and the present most likely have VAHL eligibility.

Veterans Automatically Qualify for VAHL

Just because you’re eligible for a VAHL doesn’t mean you’ll be able to get one. Getting a Certificate of Eligibility is only half the battle. You generally need to have a debt-to-income ratio of below 41% and a good credit history if you want your VAHL application to be approved.

Funding Fees for VA Home Loans Are Expensive

The VA funding fee is a one-time fee required by law and it is currently 2.15% on no down payment loans for first-time use and 3.3% for second-time users who don’t make a down payment. The funding fee drops when you make a down payment. Some claim that the funding fee is expensive, but it is actually less expensive in the long term than the private mortgage insurance that it replaces. If you apply for a conventional mortgage, lenders will require you to have private mortgage insurance if you put less than 20% down. Private mortgage insurance typically costs between 0.5% and 1% of the entire loan amount on an annual basis.

VA Home Loans Take Longer to Close

Many people assume that VAHL’s take longer to close than conventional loans but that’s simply untrue. The decision of whether or not to approve a loan is left to private lenders, so the process of applying for a VAHL doesn’t take much longer than the process of applying for a conventional home loan. It is rare for the VA to ever have to step in and look at a loan application. In most cases, VAHL can be closed within a month.

All Real Estate Agents Are Knowledgeable about VA Home Loans

There is no such thing as a VA certification for real estate agents. Therefore, you shouldn’t rely on most real estate agents for advice regarding VAHL’s. Look for a lender whose majority product is VA-backed loans if you want your lender to be knowledgeable about the VAHL process.

Many new borrowers who qualify for VA home loans don’t even apply for them because they believe many of the half-truths out there. You do not have to be on active duty to qualify for a VA loan. Just because you’re eligible for a VA loan doesn’t mean you’ll be able to get one. Many people assume that VA home loans take longer to close than conventional home loans but that’s simply untrue. These are some of the most common myths about the VA home loan program debunked.

Secured Home Loan – The Most Important Financial Verdict

A house is considered to be the most important asset of an individual. It has become quite easy for the tenants and non homeowners to own this asset by availing a secured home loan. Availing a loan against your home is the key feature of a secured home loan.

The secured home loans are specially framed for people who either own their homes or who aspire to own their homes. They help the borrower to take up a loan to buy a house. In return the borrower needs to pledge collateral. This collateral may be any priced asset or even the house itself which the borrower is planning to buy. Though the borrower can live in the house that he has bought, but the title of the house will be transferred back to his name after complete repayment of the loan amount Best Mortgage Broker In ACT.

These loans are not just availed for the purchase or construction of a new home but also for small purposes like renovation, extension, land purchase, and even the stamp duty.

The secured home loans allow the borrowers to apply for a loan up to £75000 or even more if the market value of the house is higher. The borrower can easily repay these loans at a very low rate of interest within a repayment term of 5-25 years.

While availing a secured home loan, borrowers can get various repayment options like fixed interest rate or variable interest rate. By opting for a fixed interest rate option, the borrower has to pay a fixed amount during the loan period. This option is advantageous when interest rate rise. Whereas in case of a variable interest rate, the rate of interest may vary in accordance with the changes in the loan market.

Since the secured home loans include security factor, they can be procured at easy and flexible terms. These loans offer innumerable advantages to its borrowers like long repayment term, huge amount availability, ease to own your home, low interest rate and reduced monthly installments.