VA Home Loan, 100% VA Cash Out Refinance, VA Mortgage 100 Financing, Home Loan Application. VA Interest Rates 2016. Proud to serve those who serve us in all 50 states: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
VA Home Loans
Please note before applying for the VA mortgage – No mobile, manufactured homes or raw land permitted. The VA mortgage program requires a min 620 credit score.
The national VA Home Loan Program came about in 1944 through the original Servicemen’s Readjustment Act also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. With more than 25.5 Million veterans eligiblef or VA financing, the VA loan is still an excellent source for affordable 100% financing to eligible veterans.
HOW THE VA LOAN WORKS
VA will guarantee a maximum of 25% of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000 in most locations. Select location in the country have higher Jumbo limits. The purchase price, plus the one-time VA funding fee (2%) may be financed for a combined 102% loan to value.
VA guaranteed loans are only made by approved lenders, banks, brokers, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the mortgage company is protected against loss if you default on the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment and mortgage insurance allowing you to obtain favorable financing terms.
BENEFITS OF VA HOME LOANS
- TRUE 100% FINANCING (No down payment required)
- Less restrictive credit guidelines than conventional financing
- Florida First time homebuyers allowed
- No mortgage Insurance or PMI (this saves hundreds of dollars monthly)
- No income restrictions
- No restrictions on seller of home or location. Home being purchased can be a buy owner sale, foreclosure, short sale, bank owned, etc.
- Loan amount up to $417,000 in most locations – some higher costs locations even higher.
- The one-time VA funding fee can be included into borrowers loan amount. See the 2016 funding fee chart below.
- The Cash Out VA refinance allows up to 100% loan to value. See below for more details.
2016 VA Funding Fee:
Please read more about the 2016 VA Loan Guidelines here.
VA MORTGAGE ELIGIBILITY
- Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.
- 2 years requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981
- 6 year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses
- If you are now on regular duty (not active duty for training), you are eligible after having served 181 days unless discharged or separated from a previous qualifying period of active duty
- If you are an unremarried spouse of a veteran who died whilein service or from a service connected disability
- If you are a spoiuse of a serviceperson missing in action or a prisoner of war
- A surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible
CERTIFICATE OF ELIGIBILITY (COE)
The VA Mortgage program requires the applicatnt to complete VA form 26-1880 along with proof of military service. In some cases it may be possible for VA to establish elibility without proof of service. However, it’s best to provide evidence to avoid any possible delays. Acceptable proof of service includes:
- A copy of the veteran’s DD form 214 – if the veteran has been discharged or has retired from active military service
- A Statement of Service – the veteran should obtain if still serving on active duty.
As leading VA mortgage resource, Five Stars may can obtain the certificate of eligilbility for you. Some lenders have acces to the ACE (automated Certificate of Eligibility) system. We will still need proof of service if we can obtain your certificate in this way. Not all cases can be found through the ACE system, only those which the VA has sufficient information on file for. If need help, please contact us.
If you’ve had a VA loan before you can re-use your eligibility again as long as the home wasn’t foreclosed on in which case the VA would have suffered a loss and would cause you to not be eligible again. Higher “second time use” VA funding fee may apply.
STREAMLINED VA REFINANCE LOANS
IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a “Streamline” or a “VA to VA.”
- No appraisal or credit underwriting package is required by VA. You should be aware, however, that some lenders may require an appraisal and credit report anyway. Even if you owe more on your loan than the home is worth, contact us. The VA IRRL loan may be able to help.
- A certificate of eligibility is not required. Five Stars Mortgage may use our e-mail confirmation procedure for VA streamlined refinance in lieu of a certificate of eligibility.
- A streamlined VA refinance loan may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).
- You must NOT receive any cash from the loan proceeds. Please see the 100% VA Cash Out refinance program below is you are looking to pull out equity.
- A streamlined VA refi must be a VA to VA refinance, and it will reuse the entitlement you originally used.
- The occupancy requirement for a streamlined VA refinance is different from other VA loans. When you originally got your VA loan, you certified that you occupied or intended to occupy the home. For a streamlined VA refinance you need only certify that you previously occupied it.
- The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and any points. You may also add up to $6,000 of energy efficiency improvements into the loan. Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house.
- No loan other than the existing VA loan may be paid from the proceeds of the VA streamlined refinance. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
100% VA CASH OUT REFINANCE LOANS
Five Stars now offers up to 100% Loan to Value VA Cash Out Refinance for VA home owners in 2016. Most VA lenders cap the cash out refinance at 85% LTV, however we permit up to 100% of your home’s value. This is a great way to pay off and consolidate higher interest credit cards, car loans, installment loans or other debt. Most of this type of debt carries higher interest rates when compared to mortgage interest rates. In addition, home loan interest is tax deductible. Find out today if the VA 100% cash out refinance is right for you.
As you can see there are many benefits to using a VA home loan for you’re next home purchase. The VA Loan experts at Five Stars are ready to facilitate your VA purchase loan, 100% VA Cash Out or Streamlined IRRL refinance in 2016.
Questions? Please submit the ” Request Info” form at top of your screen. You can also call ph: 800-871-2636, we are ready to serve you 7 days a week. We try our best to respond to all submitted requests within 15 minutes during regular business hours.
Helping all home buyers in all 50 states.