Hey there! This is Stacey Christopherson with C4 Elite Real Elite Real Estate Team and Coldwell Banker. We are here with Nigel Farnsworth from American Pacific Mortgage. I am super excited today to talk about VA loan programs. My husband served 20 years active duty with the Air Force and he retired out of Hill Air Force Base. Our Coldwell Banker office is just five minutes from the South gate of Hill AFB in Layton, UT. With that being said, we work with several clients every year that are VA loan eligible. We already have one blog on VA loans, however we want to follow up on that one and make sure that you fully understand the program. You can always talk to Nigel to find out about this and other loan programs.
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Nigel explains, “VA stands for Veterans Administration and It is my favorite loan to do. Not only because I am a loan officer but because I am a veteran myself.” In Nigel’s opinion, VA loans are the best on the market. The VA Loan allows the veteran to put no money down. It does not have any monthly mortgage insurance and the rates on these loans are very, very competitive. So overall it is the best as far as terms go and it is the best as far as rates are concerned at this point.
If you are in the Reserves or Active Duty the VA loan might be the program for you. There are requirements as far as meeting the required times of service. However, any veteran can use it past or present and it enables them to buy a home with no money down. Family members cannot use the VA Loan program like they can sign up with at USAA, for example. You have to have been in the military or currently be a spouse of a military member. If your spouse has passed away or has service connected disabilities, you may qualify. We have run into situations where the veteran has passed on and the wife or husband has been able to use the benefits.
Nigel goes on to say that “90% of the time we can pull the eligibility up online, instantly”. If you have previously used your eligibility or are currently using your eligibility, lenders may have to get a few documents from you. Then those documents are signed by the vet and are sent to Atlanta. This is where certificates of eligibility are currently being issued.
There are no down payment requirements unless you get into the high balance loans. If you are doing anything above the $483,000 price range, there is a calculation that lenders use. It is a very minimal amount when the veteran must bring in the difference. For example, if the sales price is $510,000 for a home, there is a calculation for the difference between the VA limit of $483,000 and $510,000. They are not responsible for the entire difference in amounts.
Outside of that, the veteran is free to put a down payment on their VA loan. If somebody sells a house and buys another and they want to use their VA eligibility, they can put that money down. Any money down reduces some of the costs within the loan. Again, there is no mortgage insurance, but there is a funding fee. This applies to every veteran using the VA loan whether it is the first time or not. However, any down payment reduces the funding fee.
Simultaneous VA Loans
You can use your VA eligibility for a loan as many times as you want. There is an infinite amount of times you can use it. Additionally, and not known to many, you can own two homes with a VA loan at one time. Different states take different percentages of the eligibility. Lenders would have to see where you would fit into that scheme if you already own a home. This is very common for us to see with clients transferring into Hill AFB. They may not have had a chance to sell their current home in another state. Or they have chosen to rent out a home in another state and purchase here in Layton, UT. The calculations and eligibility amounts may differ. You can always talk directly to Nigel or your lender about your specific situation. Depending on what eligibility you have left, if may affect your down payment amount.
Another great attribute of the VA Loan is that it is not really credit driven, so it does not have any huge level adjustments as far as credit is concerned. You can have some credit blemishes, or you can have the best of credit. There are not many adjustments within the program. Of course, in the grand scheme of things, the interest rates are phenomenal for no money down and no mortgage insurance. Again, VA loans are government insured, so lenders tend to like using this program.
We are so lucky to have Nigel here to answer all of our questions about different loan programs. Again, the VA Loan is an awesome program for our vets and those currently serving. Do not forget The C4 Eiite Real Estate Team is minutes from Hill AFB. If you have any questions you can call anytime or check out our website at www.c4sellsutah.com. We have information on VA Loans as well as other loan programs. Nigel’s information is on the website as well, look for the Lender Recommendation tab at the top.