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FHA • Conventional • Rural Development • VAVeterans AdministrationThe VA provides a 100% guaranty to lenders providing financing to qualified veterans. The veteran must receive a Certificate of Eligibility from the VA to be considered for program underwriting. The request for the C of E can be initiated by the lender and is often the first step in the loan process. VA benefits are usually conferred on vets that have served at least 2 years active duty or 6 years active reserves (see your lender for specific duty dates). One peculiarity of VA is that only the veteran and his/her spouse are eligible for financing benefits. Non-married co-borrowers are not eligible. The benefits of VA financing are a 0 down payment requirement and no monthly mortgage insurance. In lieu of monthly mortgage insurance the veteran pays a financed 2% Guaranty Fee (3% for subsequent use) to VA. This Guaranty Fee is waived if the veteran has sustained a service related disability. VA prescribes closing costs that can be charged to the vet and are typically lower than closing costs associated with other programs. VA loan programs consist of a 30 or 15 year term at a fixed interest rate.
Big River Mortgage
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