Created long ago to assist Verterans in obtaining home loans are the VA loans . These loans are an excellent option for many reasons but among the many, the most popular are 100% financing, the streamline refinance option, no mortgage insurance, no prepay penalties and non-allowable fees. When considering your Mesa AZ Mortgage options, a VA loan just may be the right fit for your needs and budget.
Let’s look at those specific characteristics to help you understand why those might be the most popular :
100% financing- Having a significant down payment is one of many struggles of buying a home. By utilizing a Mesa AZ VA Mortgage you don’t need a down payment. By not needing a down payment, you are able to avoid the stress and and worry of having enough to put toward your home. Instead, you are able to keep more money in your pocket! After purchasing a new home, having extra money is a much needed thing!
Streamline Refinance- When it comes to refinancing, a streamlined process is definitely desirable! The intention of a VA Streamline Refinance is to simply reduce interest rates and/or payments. Applying for a typical loan refinance program can be a lengthy process but the streamline option simplifies it by avoiding time consuming operations such as an appraisal, income verification, and credit qualifications.
No Mortgage Insurance- Who doesn’t want a reduced payment? A standard conventional loan may add mortgage insurance if there is not a 20% down payment or equity in the home. This does not hold true with a VA loan. A payment with no mortgage insurance means a smaller or lower payment and without the added mortgage insurance, you may qualify for more home.
No Prepay Penalties- Prepayment penalties can be incurred if you sell your home or pay off your loan within a specified time period. With a VA loan, prepayment penalties are not an issue. You are at liberty to sell your home or refinance your home when it works for you and your timeline.
Non-Allowable Fees- You’ve heard of closing costs? There are particular costs involved in nearly every mortgage transaction. However, with a VA loan there are certain fees that cannot be charged to the borrower (that’s you!), hence their name. Others, maybe the seller or your realtor, can absorb those costs but they are not paid by you. With non-allowable fees, you may have less closing costs come from your pocket. It is another opportunity to save money.
If you qualify for a VA loan, you have added buying power, as this is one more type of loan to add to your arsenol. With 100% financing, streamlined refinancing, no mortgage insurance or prepayment penalties and non-allowable fees, you may find that VA loans are an attractive option to consider. If you need further assistance in knowing if you qualify, I certainly can help.
