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Another very common home loan product is VA loans. The VA stands for Veterans Affairs and it is
governed by the U.S. Department of Veterans Affairs. This home loan product is specifically for eligible
active duty military, eligible military veterans, and certain surviving spouses. Just because you served in
the Armed Forces, does not mean you are automatically eligible for a VA loan. You just first apply for a
Certificate of Eligibility (COE). Once again, our highly trained staff at Broker House Lending can help you apply in just a few minutes. Let’s talk a bit more about this great home loan product.
****SIDE NOTE**** Talking about mortgage stuff really gets us excited (we take pride in being
mortgage nerds), but there is not enough time to discuss every little detail. Your best bet is to give us a
call at 502-742-1502 and speak to a real mortgage expert.
VA loans are the best mortgage product available, as they should be. Those who have served our
country in the Armed Forces are most deserving of special housing benefits. One great benefit of a VA
home loan is the 0% down payment. Another great benefit is NO monthly Private Mortgage Insurance
(PMI). Lastly, VA interest rates tend to be some of the lowest in the market. If you are eligible for a VA
loan, we highly suggest you take advantage of this product.
In the past, there was a misconception that VA homes were complicated and hard to obtain. Oftentimes
the seller of a home would steer clear from an VA buyer in fear that added rules would make the sales
transaction unsuccessful. As they say in the military, “That is bad intel.” VA homes do have their own
set of guidelines, but a highly trained loan officer can ensure the loan process is smooth and successful.
One of the only downsides to a VA financing is the Funding Fee. Unless you have a service connected
disability rating from the U.S. Department of Veterans Affairs that is 10% or greater, you will have to pay
the Funding Fee. However, the Funding Fee is financed into the loan amount versus cash paid at closing.
It does effect your monthly payment because it increased the loan amount, but it is still hard to beat a
VA home loan. The Funding Fee is calculated by certain factors, such as: First time usage vs. secondary
usage. Also, if you decide to make a down payment versus using 100% financing, the Funding Fee is
Lastly, one of the coolest benefits of VA financing is the option to refinance your VA loan when rates
drop. The VA has a program called the IRRRL (Interest Rate Refinance Reduction Loan). The military
looooooovvvvveeeess acronyms! This refinance product allows you to lower your rate without paying
for an appraisal or showing income documentation. The only requirement is to have the rate drop more
than .5% and the closing costs must be recouped in 36 months or less.
Broker House Lending is a Veteran Owned and Operated company. We are experts in VA home loans
AND we participate in the Homes for Heroes program. Let us help you, your family, or friends on your
next VA loan. Click here to get started. HOOOAAAH!