HomeBuyer University: Buying a Home, Just Got Easier
Course 3: Loan Type Overview
Step 1: Conventional Loans – Only 5% Down Payment
Step 2: FHA Loan – Only 3.5% Down Payment
Step 3: FHA 203k – Rehab Loan
Step 4: USDA Loan – 100% Financing
VA Loans-100% Financing & NO PMI
Veterans have the option of obtaining VA home loans granted by individual lenders but guaranteed by the federal government. The guarantee protects lenders against loss up to a certain amount should a homeowner go into foreclosure. Because of this guarantee, mortgage companies can give veterans features not readily found in other programs. The following is an introduction to the benefits of VA home loans.
Benefits Of VA Home Loans In Connecticut
The best features of VA home loans are the options for no money down and no mortgage insurance. Buyers can finance the full price of a home being purchased, if the appraisal supports the price. VA financing also enables veterans to buy a home by eliminating the added cost of mortgage insurance, which is normally included in mortgages with less than twenty percent down. Other important benefits are:
- 100% financing.
- No monthly mortgage insurance.
- Similar closing costs to other types of loans.
- VA loans are assumable.
- No penalty for paying the mortgage off early.
- Ability to finance or lower the VA funding fee for the mortgage.
NOTE: Veterans with a service-connected disability rating of 10% or more are not required to pay the VA funding fee. All you have to do is provide your award letter for your disability compensation.
Obtaining VA Home Loans
To qualify for a VA mortgage, buyers must first get their certificate of eligibility from the VA. To obtain the certificate, veterans must meet some requirements. The first set pertains to their actual service – when time was served, nature of service, and length of time served. The second set involves the normal credit score and financial analysis by lenders. Veterans can contact their regional office to obtain their certification of eligibility, which can take weeks. Or, First World Mortgage can obtain it in as little as 48 hours with the veteran’s DD Form 214.
With a pre-approval completed, buyers may then start viewing homes within their price range. Once a home is found, an offer can be made subject to approval for VA financing. With an accepted offer, veterans can then submit an actual application and lock in a rate. Once the loan is approved, a closing can take place. After closing, information is sent to the VA. Veterans are only allowed one active VA loan at a time.
This article is merely a brief overview of the benefits of VA home loans in Connecticut. For more details on this type of loan, contact First World Mortgage Corp. via phone at 860-236-LOAN.