The VA Loan program was created in 1944 to help veterans and active duty military become homeowners. The government backs portions of loans through approved lenders, allowing veterans to get mortgages with favorable terms. If you’re interested in learning more about VA loans, here are the basics. Eligibility Both Veterans and active duty service members are eligible for VA loans on homes they will occupy. Members must have a good credit rating, sufficient income, a valid COE (certificate of eligibility) and meet specific service requirements. Benefits The biggest benefit of a VA Loan is the down payment, which is zero! That’s right, qualified borrowers can get 100% of the cost of a home financed if they haven’t been able to set aside a large sum of money for a down payment. Another significant benefit is not having to pay private mortgage insurance monthly, which is a payment typically required to protect lenders against default when a buyer doesn’t put down 20%. However, there is an upfront PMI fee required on all VA loans. The lender doesn’t require monthly PMI or a down payment for VA loans because the portion backed by the government assumes the risk on behalf of the service member. Process and Advice The DD-214 is a form for veterans which outlines specifics about their active duty, including dates, assignment and rank, separation information, and any decorations, awards or medals received during service. The form is needed to acquire a Certificate of Eligibility (COE), which verifies to lenders that you are eligible for a VA loan. Active duty service members submit a current statement of service signed by the commander of their unit or personnel office in lieu of a DD-214. Service members obtain VA Loans through typical lending institutions like banks and mortgage brokers who participate in the VA Home Loan Program. We highly recommend working with a lender that has experience in dealing with VA loans. It’s a good idea to try to get pre-approved for a loan after gathering your COE. It lets buyers know you are serious, and will give you a realistic idea of how much you’ll be able to spend. For more information on VA loans, visit the US Department of Veterans Affairs website at http://www.benefits.va.gov/ .

Mortgage News Archives

The mortgage industry is constantly changing. Stay up to state with the latest news for all things mortgage related!

13 Aug

VA Loan Eligibility

Derek Parent2017-12-01T09:44:02+00:00August 13th, 2015|Las Vegas, Mortgage News|

The VA Loan program was created in 1944 to help veterans and active duty military become homeowners. The government backs portions of loans through approved lenders, allowing veterans to get mortgages with favorable terms. If you’re interested in learning more about VA loans, here are the basics. Eligibility Both Veterans and active duty service [...]

1 Jul

How to Document an FHA Cash Gift Down Payment

Derek Parent2017-11-30T19:18:46+00:00July 1st, 2015|Homebuying Tips, Las Vegas, Mortgage News|

If you or someone you know has plans to use a cash gift as their down payment for an FHA loan, pay close attention. While the cash gift is not only allowed but encouraged by the Federal Housing Administration, there are rules to how the money can change hands and how it is all documented. [...]

24 Jun

What is Mortgage Underwriting?

Derek Parent2017-12-01T10:27:33+00:00June 24th, 2015|Homebuying Tips, Las Vegas, Mortgage News|

Between loan approval and closing, your lender is doing a lot of work behind the scenes in a process called underwriting. Here are five things the lender does during underwriting. Underwriting verification After the housing crisis of the mid-2000s, the Consumer Financial Protection Bureau enacted rules to protect borrowers. Under these new rules, lenders must [...]

24 Jun

5 Tips for First Time Homebuyers

Derek Parent2017-11-30T23:58:06+00:00June 24th, 2015|Homebuying Tips, Las Vegas, Mortgage News|

Buying a home can be thrilling and nerve-wracking at the same time, especially for a first-time homebuyer. It's difficult to know exactly what to expect. The learning curve can be steep, but most of the issues can be resolved by doing a little financial homework at the outset. Take these five steps to help make [...]

24 Feb

Low Down Payment Mortgage Options

Derek Parent2017-12-01T09:07:52+00:00February 24th, 2015|Homebuying Tips, Las Vegas, Mortgage News|

The costs of home ownership are decreasing, and recent changes in mortgage interest rates and credit score requirements are making home ownership even more accessible to the masses. Not to mention, there are a variety of low down payment loan options available for buyers to take advantage of. For many buyers, the choice of which [...]

27 Jan

Should You Refinance?

Derek Parent2017-12-01T09:32:49+00:00January 27th, 2015|Las Vegas, Mortgage News, Real Estate News, Refinancing|

Homeowners who missed the last refinancing boom have been given another chance! Interest rates for 30-year fixed mortgages are at their lowest level in over a year and a half last week, and remain close to their lowest level in 50 years. Not many experts expect rates to stay low, however. According to the Mortgage Bankers Association, 30-year [...]

9 Jan

FHA to Reduce Annual Insurance Premiums

Derek Parent2017-11-30T00:13:26+00:00January 9th, 2015|Homebuying Tips, Mortgage News, Real Estate News, Refinancing|

Reduction to increase credit affordability and reflects improved economic health of FHA WASHINGTON – As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary Julián Castro today announced the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected [...]

16 Dec

Buy a Home with 3% Down!

Derek Parent2017-12-01T00:13:13+00:00December 16th, 2014|Homebuying Tips, Mortgage News|

Many people may not be aware that you can buy a home with as little as 3% down. It's true! And not only that, it's a conventional loan (as opposed to FHA or VA). Historically, conventional loans have required as much as 25% down. Thanks to our Agency Portfolio Conforming Program, first time home buyers [...]

7 Nov

Home Prices Increase in September

Derek Parent2017-12-01T08:47:54+00:00November 7th, 2014|Homebuying Tips, Mortgage News|

National home prices are continuing to rise from a year earlier, but the rate of growth is slowing down. The CoreLogic Home Price Index report increased 5.6% in September compared to the same month a year ago. This change represents 31 consecutive months where property values were higher than the year before. At the start [...]

12 Oct

30 Year Mortgage Rates Fall Back to Yearly Lows

Derek Parent2017-11-29T20:24:32+00:00October 12th, 2014|Mortgage News|

Borrowing costs were down once again this week, giving home buyers another opportunity to lock in some of the lowest rates of the year! Here are the following national mortgage rate averages for the week ending Oct. 9: 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, dropping from last week’s 4.19 percent average. [...]

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