Many people view VA loan programs with skepticism and uncertainty. This simply should not be the case as the VA offers one of the best loan programs around and we at Mortgage Corp East are proud to have VA loans be a significant portion of our business.
The VA loan program offers a no money down loan option with no mortgage insurance required, and is often on par or below conforming rates. Often times veterans walk into our office unsure of what program is best and if they should even bother looking into a VA loan because of the stigma attached. 99% of the time, it is the best loan program for our client.
The only caveat to the VA loan program is there is a VA funding fee, which depending on the amount of times you use the program can be north of 2%. However, the VA funding fee is allowed to be financed into your loan amount so you do not pay it out of pocket. An example would be if you are buying a home for $400,000 and the VA funding fee is 2.25%, your end loan would be $409,000. However, if you are deemed to be 10% or more disabled from your service the VA waives your funding fee. The majority of veterans do collect some type of disability whether it be large or small, so more often then not we can put you into a loan program with no money down, no PMI and no funding fee. It’s truly a great deal and a great service to offer for our military veterans.
If you are anticipating a VA loan, there are certain additional requirements that need to be met. The major requirement is a wood eating insect report, to establish there is no damage to the structural integrity of the home. Please have this form completed with your home inspection.
The other form you should have handy is a copy of your DD214. If you do not have one, contact one of our loan officers for instructions to obtain a copy.