Advantages of a VA Loan

Advantages of a VA Loan:

No Down Payment Necessary.

Traditional loans typically require a buyer to provide a minimum of 3.5% to 5% percent of the home’s price as a down payment — and with today’s stricter lending environment that down payment can reach even 15 or 20 percent.

For many first-time home buyers, down payment can come from cash savings or from a gift from family.  Either way, supplying this amount of money upfront may keep renters renting for a long period of time.

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The VA Loan is one of the few programs in the country that does not require a down payment. Of course, borrowers who would like to lower their monthly payments are still able and encouraged to make a down payment that’s comfortable for them.

Less Stringent Qualifying.   

Many first-time home buyers might not yet have a strong credit history, which can make it more difficult to obtain approval for a mortgage or qualify for an affordable interest rate. Since the VA Loan is government-backed, VA Loans are easier to qualify for at competitive rates.

Lower Monthly Payments.

Since VA Loans don’t require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month and give you more buying power.

In addition, the competitive VA Loan rates can save a typical buyer thousands over the lifespan of the loan.  Advantage Veteran!

 

Additional Benefits to a VA Loan  (BAH) Basic Allowance for Housing

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Cornerstone Home Lending, Inc.   Branch  NMLS # 1224262

Todd McManigal   505-918-1028   NMLS # 267557

tmcmanigal@houseloan.com

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Spouses and Occupancy

The VA allows for a spouse to fulfill the occupancy requirement for an active duty military member who is deployed or who cannot otherwise live at the property within a reasonable time.

Unique situations may arise where the spouse of a veteran can fulfill the requirement if employment issues are making reasonable occupancy difficult.

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Deployed service members, both single and married,can provide what the agency considers “valid intent” to occupy. This applies when they’re deployed from their permanent duty station. This provides a degree of necessary flexibility for homeowners who are  actively serving our nation both at home and abroad.

It’s important to note that VA lenders are required to factor in the cost of a couple’s separate living arrangement. That means any rental costs or other expenses associated with the separate housing situations can be factored into the overall debt-to-income ratio and other key metrics.

There is an additional special feature for VA Streamline refinance loans. In these cases, veterans only have to certify that they previously occupied the home. For example, a veteran who buys a home with a VA loan and then gets transferred overseas can rent out the home and still refinance that existing mortgage based on prior occupancy.

 

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“Mortgage Monster … or Mortgage Mastermind?”

                              ToddZillaLoans.com

Cornerstone Home Lending, Inc.  NMLS # 1224262

Todd McManigal    505-918-1028    NMLS # 267557

 tmcmanigal@houseloan.com

VA Occupancy Requirements

VA loans are Owner Occupied loans, meaning  borrowers are expected to live in the properties they purchase.

For most borrowers, that is not a problem, but the issue of occupancy is important, and can cause confusion.  This is especially true for first-time home buyers.

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While VA loans are flexible, government-backed loans, Veterans can’t use one to purchase investment properties or vacation homes. Nevertheless,  the advantages of a VA home loan typically make it the best loan available.

Because VA loans are meant for the purchase or refinance of the borrower’s primary residence, the VA has developed occupancy requirements to ensure owner occupied home ownership.

Occupancy Requirements

Veterans and active duty personnel who secure a VA loan must certify that they intend to personally occupy the property as a primary residence. As a result, home buyers typically have 60 days to occupy the home after the loan closes.  The agency considers this a “reasonable time”.

Occasionally, buyers may find that two months isn’t enough time. The VA does allow homeowners to go beyond that 60-day mark under certain circumstances, however, occupancy at a date beyond one year is generally unacceptable.

Occupancy rules can be especially important for active duty personnel.

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godzilla02

“Mortgage Monster … or Mortgage Mastermind?”

ToddZillaLoans.com

tmcmanigal@houseloan.com

American Mortgage & Equity Consultants, Inc.  NMLS # 150953

Todd McManigal  505-918-1028   NMLS # 267557

Rio Rancho Perfection!

7020 Vatapa Road NE, Rio Rancho, NM

2409 Square Foot    4 Bedrooms      2 Baths

 

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Southwest charm with Vigas! Impressive grand room includes dramatic Kiva fireplace with 10” ceilings.

Gorgeous kitchen cabinets & counters, island & work area.  Inviting master suite with spa like tub, plenty of storage in large walk in closets.

Nestled on a half acre lot. Room for RV or boat. Enjoy the beautiful and relaxing Sandia Mountain Views.

Listing Agent:  Maria Candelaria  Legacy Homes Realty 

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