VA Loansbusiness meeting



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:


  • Negotiable interest rate. 
  • 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.


VA Allowable Fees (not all of these fees are required):


  • lender’s appraisals
  • lender’s inspections, except in construction loan cases
  • loan closing or settlement fees
  • document preparation fees
  • preparing loan papers or conveyancing fees
  • attorney’s services other than for title work
  • photographs
  • interest rate lock-in fees
  • postage and other mailing charges, stationery, telephone calls, and other overhead
  • amortization schedules, pass books, and membership or entrance fees
  • escrow fees or charges
  • notary fees
  • commitment fees or marketing fees of any secondary purchaser of the mortgage and preparation and recording of assignment of mortgage to such purchaser
  • trustee’s fees or charges
  • loan application or processing fees
  • fees for preparation of truth-in-lending disclosure statement
  • fees charged by loan brokers, finders or other third parties whether affiliated with the lender or not, and
  • tax service fees.



For more information on VA loans and to see if you qualify, contact us today 407-834-3377 or info@contemporarymortgage.com


 

 

 


Contemporary Mortgage Services, Inc

498 Palm Springs Drive Suite 220
Altamonte Springs, FL 32701