Houston, Texas (PRWEB) December 12, 2011
So what are the top 10 advantages to financing your home using a VA Home Loan compared choosing a conventional or FHA loan? We asked the VA Home Loan Management Team in Houston, Texas why their company, Security America Mortgage, Inc., specializes in VA home loans exclusively, and they told us why these type of loans continue to top the charts with veterans and active duty military personnel. The advantages are astounding!
Check out the TOP 10 VA Home Loan benefits now and see for yourself exactly why these are just a few of the reasons to make the best choice out of the bundle.
1. No Money Down with VA Home Loans
There is no down payment required for a VA home loan. If the veteran chooses to do so, they may put a down payment. However, the down payment is not a requirement for purchase. Many other loans have a down payment of 3.5% (FHA loans) of the purchase price to 20% of the purchase price for conventional loans. Recently, 100% financing was offered for conventional loans but this caused the housing crisis. Currently, the VA Home Loans are the only 100% financing offered.
2. No Closing Costs with VA Home Loans
There are many closing costs that are required with other loans. Closing costs include Homeowners Insurance, Title Insurance, Inspection Fees, Escrow Fees, Taxes etc. If the buyer structures a VA home loan offer to purchase the ideal way, the closing costs will be paid for by the seller and not the buyer. On average, the closing costs can exceed 3-5% of the purchase price of the home. This can equal thousands of dollars. If you purchase a home using a conventional loan, you may be required to pay $ 30,000 or more for closing costs. With a VA Home Loan, you may not have to pay anything!
3. Non Allowable Closing Costs with VA Home Loans
Even if the buyer chooses to pay the closing costs (or the seller refuses to pay), the VA will limit what closing costs the buyer can pay. In a conventional purchase transaction, the buyer may be charged for the following: Loan closing or settlement fees, document preparation fees, preparing loan papers or conveyance fees, attorneys services other than for title work, photographs, interest rate lock ? in fees, postage and other mailing charges, stationery, telephone calls and other overhead, amortization schedules, and membership or entrance fees, escrow fees or charges, notary fees, preparation and assignment of mortgage to other secondary market purchasers, trustee?s fees or charges, loan application or processing fees, fees for preparation of truth-in-lending disclosure statement, fees charges by loan brokers, finders or other third parties, and tax service fees. However, with the Veterans Administration Home Loan, all of these costs are not allowed.
4. The VA Issues FREE Appraisals for VA Home Loans
When purchasing a home using a conventional loan or using cash, you will have to rely upon the appraisal as a means to determine the properties worth. The Veteran Administration will issue a certificate of reasonable value. This certificate is good for up to 6 months. Furthermore, the certificate of reasonable value (CRV) is valid for any VA buyer for up to 6 months, not just the one who wrote the contract.
5. VA Loans Specialist do the Work for You
During the appraisal, the VA inspector will verify that the property meets all Veterans Administration codes. The property must be in habitable condition. The VA protects the buyer from buying a property that is in bad condition. The VA inspector will examine, the roof, the furnace, the plumbing etc. If the property is not up to the VA code, the Veterans Administration will require that repairs are made to the home at no cost to the VA buyer.
6. VA Home Loans Offer Refinancing with Lower Interest Rates
If you (the VA buyer) have purchased a home using your VA home loan, you can choose to refinance to lower your interest rate. The streamline process allows you to refinance without a credit check, without most documentation and without an appraisal.
7. VA Home Loans No Pre-payment Penalties
Most conventional loans require a prepayment penalty. This means if you refinance or sell the home, the lender may charge you fees for doing so. In some cases, this can be as much as tens of thousands of dollars.
8. VA Home Loans Allows Points Capped
Most lenders or loan brokers will charge a service fee to originate a loan. These are commonly referred to as points. The VA has a set limit on loan origination fees. The VA will not allow a lender to charge you above what they feel is reasonable.
9. Assume-ability is Guaranteed with a VA Home Loan
All VA loans can be assumed by other veterans. Conventional loans require that a new buyer obtain a new loan. The VA will allow you to sell your property and have the new buyer take over your old loan.
10. VA Home Loans have the Lowest Interest Rates
The VA Home Loans are guaranteed to have extremely low interest rates compared to any other type of loan. The Federal Reserve play a role to play in deciding the interest rates for government funded agencies such as the VA. This fact is yet another reason why conventional loans with adjustable rates that could start out at 3% and may exceed 12%. A fixed interest rate on VA Home Loan will never increase, which is what it means to have a fixed interest rate. Your payment will remain the same for as long as you own the loan as well.
Would you like to know more about getting qualified for a VA Home Loan? The VA Home Loan Processors at Security America Mortgage, Inc. are specialists in veteran administration (VA) benefit services, and experts in VA Home Loan negotiations and processing.
To Apply for a VA Loan, contact a VA Loan Processor at 888-864-0726, or visit our website to to get started with the VA home loan application.
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Email us at garrett(at)securityamericamortgage(dot)com