VA Home Loan 0% Down Home Mortgage Loans

The Matt Keway team at Icon Mortgage is pleased to offer no money down VA home loan solutions to qualifying active duty servicemen and women, U.S. military veterans, and surviving spouses. VA mortgages can be used to purchase real estate with no money out of pocket and as a refinancing solution with low closing costs and the potential to cash out some of the equity in one’s home. VA loans are guaranteed by the US Department of Veterans Affairs which allows lenders, such as Mid America Mortgage, the ability to offer VA financing at very competitive rates.

The Department of Veterans Affairs doesn’t issue the loans; banks, mortgage loan companies, and brokers do. The VA insures a portion of the loan in case of default. Lenders like that, so they follow the requirements issued by the VA to grant the loans. But lenders also can add some stipulations of their own. However Icon Mortgage only referrers to the VA guidelines so we have no over-lays which I define as rules on-top of rules.  This means that if you have been un-approved through your bank or credit union, you very likely will be approved through Icon Mortgage for your VA home loan because we strictly follow the guidelines and approve you to those standards.

Icon Mortgage is a US Army Veteran owned local Genesee County Company in Flint Michigan for over 15 years and we strive to service our local Veterans of the Army, Navy, Cost Guard, National Guard, Air Force, and Marine Corps. Thank you for your service and please call me; Matt Keway at 810-223-2122 for you loan approval. Your home loan consultation is always FREE and your credit report, on your request is also free, give me a call or email for your requests at 810-223-2122 or visit mattkeway@gmail.com.

 

VA (Veterans Affairs) Home Mortgage Loan requirements:

  • There is no down payment required. However, the sales price cannot be higher than the appraised value of home.
  • Not exclusive to first time home buyers.
  • There are no private mortgage insurance requirements with a VA home mortgage. Unlike FHA loans that require life of loan mortgage insurance.
  • Sellers may contribute towards closing costs in many cases, and can also in most cases pay for ALL of the Veterans closing costs.
  • There is no prepayment penalty for paying off a VA mortgage early; you can pay off your mortgage at any time with 0 pre-payment penalties.
  • VA home loans are assumable; this means when interest rates rise in the future you can market your home for a sale with your low-interest rate that you currently have and a potential buyer can assume that low rate which can be a huge selling point.

 

Here is a link to watch to learn if your military service makes you eligible for a VA home loan:

https://youtu.be/E1NO7ma8hDU

VA IRRRL loans allow borrowers with VA mortgages the ability to lower their interest rate without many of the costs and hurdles associated with other mortgage programs. There is no appraisal required with an IRRRL.

  • Borrowers may be able to roll any costs into their loan amounts or take on a higher rate in order for a lender to pay any associated loan expenses.
  • No cash-out is available from a VA Interest Rate Reduction Refinance Loan.

 

Certificate of Eligibility

After establishing that you are eligible, you will need a Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. This page describes the evidence you submit to verify your eligibility for a VA home loan and how to submit the evidence and obtain a COE.

Before you make an offer, be sure to discuss with your real estate agent if having a VA Option Clause in your Purchase and Sales Agreement is a smart move. A VA Option Clause may enable you to void the contract without penalty if you are unable to qualify for VA financing.

 

VA Home Loan Appraisals

Once the buyer gets under contract on a home, a VA appraisal is conducted to assess the market value and condition of the property. The VA appraisal is a required step in the process and isn’t the same as home inspection, which is more thorough but not required. A home inspection is usually a good investment and can be done before the lender orders the independent appraisal.

The VA appraisal provides an estimate of the value of the property compared to the price of comparable homes. The appraiser will also check the property’s condition against the VA’s Minimum Property Requirements (MPRs). The VA wants to help ensure veterans buy homes that are safe and sound. Being familiar with MPRs will curtail frustrations if any red flags while you’re home shopping.

Properties that are valued below what you agree to pay present an issue. Generally, veterans can seek a Reconsideration of Value, make up the difference themselves or walk away from the purchase and look for another home. Some property condition issues will need to get fixed before the loan can close. Talk with a lender for more information.

 

Credit & DTI Ratio (Debt To Income)

The VA doesn’t require a specific credit score for veterans and military members who want to use this benefit. But VA lender typically will, and it’s often around a 620; however, your best option is to contact your local mortgage specialist Matt Keway at 810-223-2122 or www://mattkeway.com and work on getting your FICO score above 640 to make your home buying experience better. If you visit mattkeway.com or call me directly at 810-223-2122 I can consult you on how to raise your FICO score for free and we can work together to get you to the place you need to be to purchase your home.

 

Steps to Use the Benefit 

Eligibility – Determine if you are eligible for the VA Home Loan benefit based on service and discharge status; Icon Mortgage can help you with this just call Matt Keway @ 810-223-2122 or visit mattkeway.com for assistance.

Apply for a Certificate of Eligibility – A Certificate of Eligibility (COE) verifies that you are eligible for a VA-guaranteed loan; Icon Mortgage can this for you for free; we will take your information and send it to the VA and receive your VA Eligibility and discuss your options.  

In using your VA Home Loan benefit, you may be charged a 1% flat charge by the lender (sometimes referred to as a loan origination fee), and whatever reasonable and customary amounts for any or all of the following:

  • Appraisal and Compliance Inspections
  • Recording Fees –These are fees that you pay for recording your deed to the county and state.
  • Credit Report –Credit reports are free of charge at Icon Mortgage for pre-approval.
  • Prepaid Items
  • Hazard Insurance –This is Home owners insurance, just like auto insurance you must have an HOI or home owners insurance  policy in place once you purchase a home; typical home owners insurance policy’s range from $600-$1,200 per year depending on your home value, credit score, or if you have had any insurance claims in the past.
  • Flood Zone Determination
  • Survey (Not usually needed with Icon Mortgage)
  • Title Examination and Title Insurance
  • Special Mailing Fees for Re-financing Loans
  • VA Funding Fee- This fee is rolled into your VA loan and is not an up-front cost to you; the money helps keep the VA loan funded for other veterans.

In many instances you can negotiate with the seller to pay part of all closing costs; 4% of the purchase price is common but the veteran can have the seller pay for all of the closing costs in most cases up to 6% and higher. To limit your closing expenses, ask your real estate agent to submit your offer with the seller paying your closing costs. A local real estate agent that is an expert in VA home purchases that I recommend is Ed Constable from Tremaine Real Estate or use this great service that matches you with top agents in your market

Want a more basic understanding of VA loans? Click Here!

 

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