We have recently had several McArthur Homes homeowners who have financed their home using a VA loan. This is a unique program available to veterans which allows for 100% financing and competitive interest rates. Below I have provided some basics of VA loans, which were provided by one of McArthur Homes' preferred lenders, Scott Smith.
Down Payment & Mortgage Insurance Not Required
Down Payment & Mortgage Insurance Not Required
The VA Loan allows Veterans 100% financing without private mortgage insurance or a needing to obtain a 20% second mortgage. The guarantee of a VA Guaranteed Home Loan means the lender is protected against loss if you fail to repay the loan. Because the guaranty replaces the protection that the lender normally receives by requiring a down payment or mortgage insurance, qualified borrowers are allowed to obtain favorable financing terms without a down payment.
Assumability
A VA loan can be assumable. For VA Loans committed on or after March 1, 1988, you may sell your home to someone who agrees to assume your loan if the creditworthiness of the new borrower is approved. This can be a significant selling point when it comes time to sell your home.
Interest Rate
VA loans rates offered to VA borrowers can sometimes be lower than interest rates offered to the same borrowers for conventional loans.
No Prepayment Penalty
You are able to repay your VA loan at any time with no penalty. Often loans with prepayment penalties require an additional amount be paid to the lender if the loan is repaid within the first two or three years. Your VA benefit provides this extra peace of mind.
Late Payment Guidelines
One of the requirements for the servicing company of a VA Home Loan is that there be no late charge unless payment is more than 15 days overdue. Any late charge may not exceed 4 percent of payment amount. In addition, financial counseling is available from the VA in case of temporary financial difficulties.
Streamline Program
The VA Streamline Refinance allows qualified VA mortgage holders to refinance at a lower interest rate and/or term without having to re-qualify and in some cases obtain another appraisal. This is provided to those who have remained current on their VA loans.
For more information contact Scott Smith of Prime Lending at 801-209-3850 or visit www.McArthurHomes.com.
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