November 2, 2018 | Jessica Oliveira
Benefits of using your VA Loan

There are thousands of Veterans who aren’t using their VA Benefits.  The VA Loan is one of the best loans out there when purchasing a house.

Why you should be using your VA Loan:

1. It is 100% Financing which means there is no down payment.   FHA loans require 3.5% and Conventional loans ask for 5% down.

VA FHA CONVENTIONAL
LOAN AMOUNT 0% Down 3.5% 5%
$200,000.00 $0 $7,000.00 $10,000.00
$300,000.00 $0 $10,500.00 $15,000.00
$400,000.00 $0 $14,000.00 $20,000.00

2. There is no Private Mortgage Insurance (PMI).
4. There is no prepayment penalty. You can pay off the loan early without any penalties
5. The VA Loan is Assumable.  Another Veteran could possibly take over your mortgage payment.
6. VA Loans have the lowest foreclosure rate.
7.  You might be exempt from the VA funding fee if you have a service-connected disability. Your COE will note this.

The VA Loan is a 100% Financing with no down payment but there are closing costs.  Our job as a Realtor is to negotiate and try to get the costs and your prepaids all paid by the seller.  In the end, it is up to the seller and in some situations, they can’t pay all but will pay some.  
(Property Tax, Homeowners’ Insurance, Condo Fees, Homeowners’ Association Fees, Mortgage Recording Fees, Inspection, Appraisal, Settlement Fee, Survey of the Property, Inspection of the Property, Title Insurance Policy for the Buyer, Flood Insurance Policy).

Inspection: This should be done by a qualified inspector. Inspections can cost about $300+ depending on the age of the home and square footage.

Appraisal:  The lender will order the appraisal which normally costs about $400-450. VA appraisals can take up to 10 days sometimes more here in FL.  All depends on how busy the appraiser is.

Documents to get the loan process started: 
  • Certificate of Eligibility
  • DD-214
  • Last 30 days paycheck stubs
  • Last 2 years w-2's
  • Last 2 years tax returns
  • last 60 days bank statements
  • Copies of social security, pension, and/or retirement award letters

**If you are thinking of purchasing a home, you want to find a Realtor who has knowledge of the VA Loan and works with Mortgage Specialists who know the ins and out of the VA Loan Process.  Your timing, needs, and wants are very important so it’s best to work with professionals who understand that.**

Thank you to all Active Duty Military and Veterans for your service! 
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