Knowing More about VA Loan and its Mortgage Rates

The VA loan program has turned out to be a highly successful military home loan guaranty program offered by the government of the United States. Today it is a highly popular mortgage loan offered by qualified lenders in the city, and approved by the federal government. Today, it has been the cause why more than 20 million veterans in the country are able to lead a stable and secure life within their own houses, with their families. But, changes of regulations and fear of a market collapse, keep people skeptical about the loans and whether they would facilitate their requirements.

Why is it advantageous to have a VA loan?
 

This loan program is indeed powerful and highly flexible. Thus, it is perfect for people who are looking for home ownership and are struggling to accumulate the required finance. The best part is that one does not need having a private mortgage insurance for getting a loan amount sanctioned. Competitive rates and terms are allowed by lenders of VA loans and one can get to save a lot of money while closing. However, it essential to know about the mortgage rates for VA loans before house hunting is started.

What are the current home loan rates?

The interest rate currently is pretty low and that is exactly why this is the right time to invest in home ownership. Let us take a look at the VA home loan rates today.

5-Year ARM	3.125%	(3.62% APR)
30-Year Fixed	3.75%	(4.011% APR)
15-Year Fixed	2.875%	(3.345% APR)
VA 30-Year Fixed	3.25%	(3.505% APR)
VA 5/1 ARM	2.875%	(2.967% APR)

 

There are several factors that determine the rate of VA home loan. Though the interest rates would be as mentioned, it would also depend on certain other factors. These factors include credit score, loan duration, debt-to-income ratio and current situations in the market. The best VA loan rates can be achieved once you have conducted your share of market research. Every lender would want to know all about your debt-to-income ratio and credit score before a loan is guaranteed. But, the rules aren’t very stringent and therefore a decently good credit score will get you really low interest rates.

A Few Useful Things to Know About VA Home Loan Application

The Department of veteran affairs of the U.S. Federal Government offers guaranty to the home mortgages taken by veterans and active duty members of the U.S. military. VA loans, as such loans are often known, offer a range of different benefits like lower interests, zero mortgage insurance and a range of other benefits. However, people often not aware of a few basic things and as a result they miss out on the benefits they are entitled to. So, if you are looking to take the Loan, there are a few things that you should know before applying for the debt.

VA Loan Eligibility

The department of veteran affairs has specific guidelines which determine the eligibility for the loan. If you want to be eligible for such a mortgage, then you need to be –

• An active duty member of the United States military who has served for more than 90 days. Or,
• A veteran of the United States military who has served for more than 180 days during peacetime or for more than 90 days during wartime. Or,
• A person honorably discharged from duty. Or,
• A member of the national guard or the reserves who has served for more than six years. Or,
• A surviving spouse of a personnel killed in action, missing, imprisoned or disabled during service.

Applying for a VA Home Loan

Most of the times, people ask the question how to apply for a VA home loan? Well, the process of application is not that hard. To begin the process, you just need a few documents.

Documents you would need

The first document you would need is the DD214 form which you would get when you separate from the service.  You would also need the certificate of eligibility (COE). You can get the document yourself or you can ask your Loan Specialist to get for you.

Another thing that you should get is the pre-approval letter. The pre-approval letter tells you how much loan you can get. Most real estate agents would ask for the pre-approval letter before they enter into contract. The letter would be given by an approved lender. So if you want to apply for a VA home loan, then it would be of great help to get in touch with the experts.

These are the few simple steps that you should follow while applying for a VA loan. Take the help of the experts and get the loan that help you to buy a home in America.

Why Colorado is a Golden Spot for Finding Residential Houses for Veterans

The mere thought of shifting to a city in a country like America is extremely exciting, but the various factors associated with life in the city calls for due consideration. Location, infrastructure, general lifestyle and income opportunities are the factors that are taken into consideration. If we look at Colorado, it is a growing state with the right mix of natural elements as well as city bred cultural elements and infrastructure. Besides, it has also got great scope for veteran living as there are several VA approved lending institutions willing to offer great loans on home ownership as well as automobile purchase.
 Why would a veteran choose Colorado?

Veterans and military men are the most respected people of the nation and their selfless service to the country is upheld by its people as well as its government. It is thus the duty of the government to ensure their as well as their family’s security. After honorable retirement from service or even during servicing years, these respectable men and women can opt for the Veteran Affairs loan scheme to find a suitable house from themselves. Colorado is one of the most popular states of America and it has got veterans vying for a living there. The reason why the state is such a crowd puller today is because of the following reasons.

• Colorado has got the Air Force Academy as well as the North American Aerospace Defense Command which recruits thousands of people each year. It also accommodates a large number of veteran families every year which includes families and children of deceased, disabled, MIA as well as POW people.

• The Aspen ski hills and the picturesque beauty of the Rocky Mountains offer a stunning view for the eyes and the soul.

• The cost of living in the state is much lower than that of the state

Besides, the real estate industry is making news with its rapidly increasing rates as well as the prospects of new building projects. Areas like Centennial, Longmont, Fort Collins and Leadville are places having some really enticing houses and apartments.

How does the housing market there look?

Home prices currently look good, but it also depends on the areas you are willing to have a home in. The most popular areas where people are looking forward to have a house in include Montrose, Parker, Westminster, Lakewood and Red Feather Lakes. The median value of houses starts from $166,000. There are certain other areas with higher limits.

All about Colorado VA loans

The VA loans program which was an initiative by the Department of Veteran Affairs was introduced to help military professionals and veteran people get a home loan in a hassle-free manner, and in half time than conventional loans. In case of conventional loans, the process of loan sanctioning is a little long drawn. After application, there is detailed checking of your eligibility and credit scores and that brings down the chances of many people. In case of VA loans, Colorado lenders ensure that the process gets over soon and the interest rates are low too. The eligibility criteria include the following:

• 180 days spend in active duty and 90 days during war time

• Honorable discharge from service

• Being the surviving spouse of a Veteran who is either alive or died during service

If you get in touch with the best mortgage lenders Colorado, they would give you complete idea about debt in income ratios and also credit scores and interest rates on the loans. They would also outline the documentation needs and the various processes that are included within them. The best VA loan lender will not only answer to all your queries but will also talk about lending fees and closing costs associated with VA home loan Colorado.

Can You Lower Your Costs in Case of New Home Purchase?

It is probably the dream of millions of home buyers out there to procure a home for less expenses. For Americans and veterans home buyers in the country, it is not a far-fetched dream if they manage to understand the intricacies of the real estate game. Getting in touch with an expert in the field of real estate will help you discovering new and unconventional ways you can reduce your expenses and avoid paying too much on the financial costs of your home.

What are the payments one needs to do?

In case of a home purchase there is need for a home loan that will help you. A number of mortgage loan programs designed for home buyers. However buyers should be very careful about choosing the right mortgage loan option. There are certain few that ask you to pay more upfront, but in the long run you might find it advantageous since the difference in the amount of money that is paid in whole compared to the monthly payment would be huge.

How can one avoid extra costs?

The comparisons should be done efficiently. The loan scheme has been designed specifically for servicing military men and women as well as veterans. According to their policies, there is no need for initial down payments and the interest rate on mortgages are also pretty less. But, there are certain eligibility requirements that people need to fit into. Those who do not qualify within them can consider conventional loans like FHA. To lower extra expenses, one should always try to do his mortgage payments in time. In case of any defaults in payments, the financing costs can go up to hundreds and thousands of rupees. You should also try to lower the cost of the home you are purchasing. Get into talks with your real estate agent and try to get a good home at the lowest price.

So, hire a loan expert in this regard as soon as possible and make smart decisions about VA mortgages on home purchase.

Things to Know about Mortgage Insurance

Mortgage insurance, sometimes also known as Private Mortgage Insurance or PMI, often causes a lot of issues for home-buyers in America. People who have a mortgage on their property often find their monthly mortgage payments to have increased because of mortgage insurance.

What is mortgage insurance?

The basic thing about loans is that they are risky. When a lender is offering you a loan, they are taking a risk and that is the reason why they look for ways to lessen the risk. Most of the times they ask for a down-payment, which in some cases can go up to 20% of the total loan amount. Now, sometimes people are unable to arrange for the down-payment. Lending to them would be even more risky. That’s the reason why lenders try to mitigate the risk by getting an insurance which would protect them if you fail to pay the loan. This is called mortgage insurance.  In most cases the lender would ask you to pay for the premium and that amount gets added to your monthly mortgage payment.

 Is private mortgage insurance beneficial for you? 

Private mortgage insurance helps you to get a loan even if you can only arrange for a down payment of as little as 3% of the loan amount. This makes the loan a bit easy on the pocket as you don’t have to pay huge amount of money upfront as a down payment. However, since the premium gets added to monthly mortgage payments, which might put a stress on your monthly budget. You don’t have to pay for PMI throughout the duration of the loan. When the mortgage balance goes under 80%, you don’t have to pay for any private mortgage insurance.

Is there a way to avoid paying mortgage insurance?

Well, conventional loans and even most government backed loans, including FHA Loans, need you to pay for mortgage insurance. However, you can get relief from such insurance if you get a VA Loan. The Home Loan Guaranty Program of the Department of Veteran Affairs (VA) of the U.S Federal Government guarantees the home loan taken by veterans and active duty members of the U.S Armed Forces and their family members.

Eligibility for VA Loans

The following people are considered eligible for a VA Loan –

• An active member of the Military who has served for more than 90 days
• Veterans who have served for more than 90 days during wartime or 181 days during peacetime.
• Member of the National Guard or Reserve who have served for more than six years.
• People who have been dishonourably discharged from duty.
• Unmarried spouses of deceased, disabled, P.O.W. or M.I.A veterans.

So, if you are eligible for a VA Loan, you should get in touch with a VA approved lender near you. If you are looking for best VA mortgage loan in Hawaii, Get help of the experts and complete relief from mortgage insurance.