if you want to save a lot of money and you happen to be a Veteran then you need to read this article I will be telling you how you can save a good chunk of cash, find out how you can get up to $1,500.00 towards the closing costs. Now if you are Vet like me ( I was in the Marines, nothing personal if you were not ) and you have been thinking about how to get a home loan because you have a goal of buying a house or because you are in need of refinancing your home. Then you really need to know the benefits of getting a VA home loan as well as getting started, because as a veteran, VA home loans do offer you some very good benefits. But before you can get your va home loan there is one thing that you will have to do, and its something that everyone has to do to get their Home loan Benefits. I will talk about that at the end of this post but for now we will go over some of the benefits of a VA Home loan. If you are a veteran and have not looked in getting a home using your VA benefits, it may be a good time to just see what you may qualify for.
Getting a VA home loan is one of the benefits that a Veteran has so that they can become a home owner, WITH LITTLE TO NO MONEY. There are other home loan programs available, such as a conventional home loans, or FHA home loans. But the VA home loan has a couple of very important features 1) is NO MONEY DOWN , THAT IS ZERO, NO DOWN PAYMENT. 2) Unlike a FHA loan that has mortgage insurance with an upfront fee and a monthly fee that can add several hundred dollars to the mortgage payment. VA does not have a monthly mortgage insurance payment tacked on top of your mortgage payment. Which allows you to either qualify for more house and even have a lower payment than someone with a loan amount as yours but they have a FHA loan.
You don’t need to have a perfect credit to get a VA home loan you can get home loan with scores as low as 550. Compare that to a FHA loan and with the same scores, minimum down payment would be 10% VA will still allow you to come in with zero down. Please keep in mind that down payment and closing costs are two different things you still have to pay for escrow fees, the appraisal etc. Which can be a few thousand depending if the seller is willing to pay for any of the closing costs.
If you think you are ready to start the process on using your VA benefits to get a home loan one of the things you will have to do is apply for your certificate of eligibility. Click Here, and just follow the instructions, you will need to get your certificate of eligibility in order to get your VA home loan.
Something to keep in mind that even though there is not a monthly mortgage insurance fee added to your payment VA does charge what they call a funding fee that can be financed on top of your loan. If you have never used your VA benefits then the funding fee is 2.15 % of the loan amount and is added to the total of the loan amount. If you have used your VA benefits before then it does go up to 3.3%. It is a good chunk of change but you still coming in with nothing down and you have no monthly mortgage insurance payment like you would with a FHA loan which can easily be $2-300 more a month every month for the life of the loan. Now VA is looking pretty damn cheap. Nothing is really free and the funding fee is really just in case you do not pay and there is a foreclosure done on the home. The funding fee is really like an insurance on the loan.
Now lets say you filed for Bankruptcy or you had to do a short sale or a foreclosure in a previous home you had and now you are recovering. On a bankruptcy you only have to wait two years after it is discharged from the date you filed but from the date it was discharged. Very important the date your bk is discharged don’t get a bunch of debt but start working on re-stablishibng your credit. The easiest and fastest way is getting a secured credit card or even getting added on to an account. Try to shoot for 3 trade lines they do not have to be big accounts can just be $500.00 accounts but they will count towards establishing some sort of credit history and will get you points going again.
Now if you did have to do a short sale or even a foreclosure you only really need to wait two years from that date to qualify again and use your VA benefits. There is one catch, if the VA lost money in that transaction you might not have full benefits but if you know you did do a short sale or foreclosure, the best thing to do is check with the VA on that. To see if you have full benefits or only partial.
if you are interested in getting a VA home loan just ask me.
If I move and rent out my home under a VA loan, can I buy a house at my new location with an FHA loan?
I purchased a home in summer 2010 using a VA home loan. I expect to be PCS’d (Permanent Change of Station) in 2013. Due to the market, I doubt I can sell my home after only 3 years, but would still like to own my home at my next duty station. I would like to rent our current home after we leave. Because we are just starting out I won’t be able to build up my savings to afford 20% down, so I have been looking at my options. Can I purchase my next home using the FHA program and not have the VA or the FHA people sending me letters?
My credit is currently around 760.
We would have time to put renters in our house before purchasing another. And either way, we will effectively have 2-payments, whether we are renting at our new location or purchasing at our new location. I dont see being able to even break even on our current home yet and therefore we cannot sell it before moving.
Also, our household’s current income is around $7000 before taxes not including any rental income.
Thank you for the insight rswpbc.
Yes you can as long as you qualify with both payments. Since you have no history of being a landlord they may or may not let you offset the payment with rent, and if they do it will only be 75% of the rental income. Will be the max you will be credited but more than likely even if you are positive in the rent you will not be given enough credit to offset the mortgage payment. If the other home does not have at least 30% equity you will need to qualify with both mortgage payments.
To correct other posts…only under very few conditions may you have 2 FHA loans at once. But for the most part the you can only have one FHA loan at a time. FHA is 3.5% down, not 3%. Also keep in mind that this year the PMI factor is going up and from now on the PMI on a loan is for the life of the loan vs. only 5 years due the the FHA being in the red.
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