Military veterans have an excellent opportunity to purchase a home with no down payment or possibly refinance without an appraisal. There is also a cash out refinance available up to 95 percent of the appraised value.
Loans for a purchase allow the seller to pay all of the buyer’s closing costs, and there is no monthly mortgage insurance. The monthly housing payment consists only of the principal, interest, property taxes and homeowner's insurance.
Veterans who receive at least 10 percent disability income are exempt from the up-front funding fee.
Veterans with a credit score of at least 640 can most easily qualify for a home loan. Borrowers with no credit at all may also become approved with credit references.
Loans for a refinance may qualify for a streamline refinance. Your home may be valued less than your loan amount, and you might still be able to obtain the new loan. It is for the payoff of the current loan, allowable closing costs and the VA up-front funding fee.
A cash out refinance can be done up to 95 percent of the appraised value. You can use the funds to pay off the current home loan and use the remaining cash for debt repayment, housing repairs or upgrades, etc.
If you are a veteran, it would be in your best interest to check out what benefits are available to you either for gaining or maintaining home ownership. The VA home loan is indeed the best home loan out there.
JoAnn Moore is a Certified Military Housing Specialist. She is a Licensed Mortgage Professional, NMLS #165477. Contact her at 302-855-1306 (office) or 302-236-1229 (cell); email MMODJoAnn@aol.com or go to www.TheMortgageMarketofDelaware.com.