Mortgage Solutions Financial

Transcription

1 VA Loan Basics

2 VA Loan Basic Training VA loans refer to a special loan program created by the U.S. government and guaranteed by the U.S. Department of Veterans Affairs. The loan is designed to provide special benefits and qualifying conditions to veterans of the Armed Forces as well as the surviving spouses of veterans. Strict guidelines must be met by lenders wishing to offer VA loans, and Freedom Financial Services is proud to be a part of the program. We have immense respect and admiration for the men and women of the U.S. military, and deeply appreciate the sacrifices they make to secure our freedoms. It is our sincere honor to assist Colorado s military families wishing to purchase a home or refinance their home mortgage in every way that we can. CONTENTS What Are the Benefits of VA Loans? 3 Who Is Eligible for VA Loans? 4 First Steps 5 2

3 What Are the Benefits of VA Loans? In 1944, Franklin D. Roosevelt signed the GI Bill of Rights into law. The VA Home loan initiative was a part of that bill, and over half a century later it is still doing what it was designed to do - assisting veterans and their families in achieving their goals of home ownership. As a form of repayment and gratitude for the sacrifices the members of our nation s armed forces make on a daily basis, VA Loans offer several benefits exclusive to qualified veterans. 100% Financing / No Down Payment Required Most conventional loans require that borrowers pay 5% to %20% of the sales price in the form of a down payment. For example, if the sales price is $200,000 the borrower would need to present a $10,000 to $40,000 cash down payment up front. The VA loan program requires zero down payment, opening doors to financing that may have been difficult to obtain otherwise. No Required PMI PMI, or Private Mortgage Insurance, is often required when borrowers of conventional loans are unable to provide at least a 20% down payment. PMI is designed to protect lenders should a borrower default on a loan. Because VA Loans are backed by the US Department of Veterans Affairs, lenders assume less risk, and are able to omit the requirement for PMI. This advantage can end up saving qualified veterans a substantial amount of money. Favorable Interest Rates Because VA loans carry the VA guaranty, lenders assume less risk. This enables lenders to offer very competitive interest rates that are often lower than those of many conventional loans. 3

4 Who is eligible for VA Loans? Since the inception of the VA Loan in 1944, nearly 20 million veterans have benefitted from the program. In 2012 alone, over 539,000 VA loans were originated. Still, not every member of the military can qualify. The basic criteria for eligibility below apply in most cases. Remember that the final loan approval will come from the lender, who will have additional credit and income requirements. Basic Eligibility Requirements 90 or more days of active service during wartime. 181 or more days of active duty service during peacetime. Surviving spouses of military personnel who died in the line of duty or due to a duty-related injury or illness. *If an individual is currently serving active duty and has met the required 90 or 181 day durations, he or she should be eligible. *If the parameters regarding length of service are not met due to injuries received in the line of duty, special conditions may allow eligibility. Disqualifying Criteria Individuals who have received dishonorable discharges will be deemed ineligible. Former spouses who have remarried are ineligible. 4

5 First Steps We re here to answer your questions. If you are ready to purchase a new home or refinance an existing mortgage, and you believe you may be eligible for a VA Loan, call Freedom Financial Services today. Our knowledgeable mortgage experts are here to answer your questions about VA Loans and are dedicated to finding the best options available to you and your family. Complete your free loan application today. Freedom Financial Services offers a free online loan application at Fill out the application at your own pace, and even save your work to complete at a later time. Thank you. Once again, we d like to express our sincere gratitude for the hard work, dedication and sacrifice of our nation s military members and their families. We hope you find this guide useful, and that we may play a part in helping you to reach your goals. Our Mission: Freedom Financial Services strongly believes every client should be served with integrity, dignity, and respect. Without compromise, Freedom is committed to providing loans that are in the best interest of our clients, not our bottom line. Freedom will continue to educate the community by empowering our clients to make responsible and informed fiscal decisions that result in greater financial peace of mind. Equal Housing Lender 2012 Mortgage Solutions of Colorado, LLC., dba Mortgage Solutions Financial NMLS # AR ; AK ; Licensed by the State of CA, Department of Corporations Under CA Residential Mortgage Lending Act License # and under CA Finance Lender Law License #603-H857; CO Mortgage Company Registration Regulated by the Division of Real Estate; CT ML-61602; ID MBL-7290; IL MB ; IN and 17442; KS MC ; KY MC83187; MD 19702; MO ; NE 2000; New Jersey Mortgage Lender License; NM 02464; OH MBMB ; OK MB001457; OR ML-4912; RI LL; TN ; TX SML Mortgage Banker Registration; WA CL61602; WY 1022 and SL