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VA home loans available for veterans

September 24, 2016

Veterans, did you know you can refinance your current VA home loan with very little paperwork? Plus you can do it without an appraisal. For example, a veteran can obtain a refinance of $300,000 to pay off a current VA home loan. The loan to value is unlimited as no appraisal is required. You can actually owe more on your loan than your home is valued at and still get the loan. Current low interest rates allow for 3.25 percent fixed-rate interest for a 30-year term and 780 credit score. This equates to an estimated $1,312 principal and interest payment. Plus, no mortgage insurance is required on VA home loans.

Veterans with other types of loans can also obtain VA home loans, but these would need an appraisal. The loan-to-value ratio can be up to 100 percent. Again, no private mortgage insurance is required.

Veterans can qualify for VA home loans with credit scores as low as 580 on regular stick-built homes and Class C double-wide manufactured homes. The upfront VA Funding fee is waived if the veteran receives any military disability income on at least 10 percent disability.

First-time use of the VA eligibility has a 2.15 percent upfront funding fee and 3.3 percent after that. The upfront funding fee is reduced to 1.5 percent with down payments of 5 percent to 9.9 percent and down to 1.25 percent on down payments of 10 percent or more.

The streamlined VA refinance (VA loan to VA loan) has an upfront funding fee of .50 percent. If you are a veteran and have your DD-214 and/or certificate of eligibility, it would be a good idea to check further into what great loan programs are available to you.

JoAnn Moore is a licensed mortgage professional, NMLS # 165477 in Georgetown. For more information, call 302-855-1306 or email MMODJoAnn@aol.com.

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