The Mortgage Insider - Home Financing with Contemporary Mortgage

Are you a veteran looking for a home?

There are many benefits you can take advantage of as you navigate the home buying process, and the team at Contemporary Mortgage can help you to find the loan that best suits you for your new home.

Often times, you will be able to put zero percent down if you’re using a VA loan. Low interest rates can cover processing and underwriting fees if you’re using a VA or FHA loan.

Contemporary Mortgage can help you pay for closing costs with a lower interest rate than you would see with other programs. Now, here is some background on VA loans. 

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Some other factors that you might consider: 

• You can often get the earnest money deposit back at closing with a VA loan.
• The VA loan appraisal is more in-depth relative to other appraisals. The appraiser might catch things that other appraisers might not.
• You can have more than one active VA loan at once.

Contact Contemporary Mortgage Services, Inc. today, to speak with a team member about how you can get started with your home buying process. 

www.ContemporaryMortgage.com

(407) 834-3377

info@contemporarymortgage.com

The US House of Representatives just recently passed a new bill this week, that improves and modernizes the VA appraisal requirement. 

The bill is titled HR 7735, and is known as the "Improving access to the VA home loan benefit Act of 2022". The key takeaway from this bill is that the VA will now allow "desktop appraisals" , and will even begin allowing "appraisal waivers", in certain scenarios. This should help to modernize the VA appraisal process and bring it up to speed with Conventional and FHA loans. 

The bill was introduced by Illinois Rep. Mike Bost, who said, "This bill will make sure that veterans are not unfairly disadvantaged during the home buying process and allow for a modern, digital appraisal process, which will get them into their new home faster". 

To learn more, click on the following link: https://www.housingwire.com/articles/house-passes-bill-to-modernize-va-appraisals/