What You Need To Know About VA Loans
Posted by Navigate Realty on Wednesday, October 20, 2021 at 2:03 PM
By Navigate Realty / October 20, 2021
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What You Need To Know About VA Loans:
The team at Navigate Realty in the Triangle and on the NC Coast dove deep into VA Loans in a certification course today with Mutual of Omaha Mortgage David Smith and Justin Pohn. To say we all learned a lot is just scraping the surface and we want to share what we learned with you!
WHAT IS IT?
A VA loan is a financing loan option for those who served in the military for a certain period of time. The VA (the insurance policy) makes a guarantee to the lending institution -for 25% of the loan amount (from a lenders perspective the effective LTV is 75%). This is th eonly loan attached to an inusrance policy!
Because the risk to the bank is reduced, the bank can provide more affordable loans to the Veteran:
• Eliminating the need for a down payment (100% financing on anything)
• Provides the Veterans favorable and competitve interest rates
• Eliminating Mortgage Insurance (NO PMI) which means more buying power!
QUICK FACTS:
-VA Mortgage Benefits do not expire.
-VA Loans do not take longer to close.
-National Guard and Reservisits Qualify for the loan
-You can use your VA benefits as many times as you wish.
-You can have more than 1 at a time.
-There is no limit to the size of a VA loan. (There is a county loan limit, but veterans can purchase above the county loan limit with a 25% down payment)
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