Since Veterans or VA mortgage loan rates are backed by the federal government, lenders like CambridgeHomeLoan.com can offer competitively low-interest rates. The eligible veteran will most likely find that rates are a bit lower for a VA Home Loan than they are for a traditional mortgage.
Today’s Mortgage VA Rates
- Credit score – CambridgeHomeLoan.com’s mortgage specialist can work with anyone who currently has a low credit score. The higher your credit score, the better the chance that the home buyer obtains a better rate. Your loan specialist will discuss ways that you can have items removed from your credit report in order to quickly increase your score. Current mortgage VA loan rates can change as your credit score changes.
- DTI or Debt-to-income ratio – DTI is the amount of debt the borrower has accrued and then compared to the amount of gross income that is earned each month. Current VA loan rates are affected by your each party on the loans debt to income ratio.
With a VA Home Loan veterans can qualify for a home loan without having to spend any amount as a down payment. That’s a zero down home loan. VA loans don’t have Private Mortgage insurance also known as PMI costs. The federal government guarantees all VA home loans. This allows our veterans to save a significant amount of money during the life of the mortgage as a benefit for their time served.
How Do I Know What My Allowance Is For Housing?
Veterans receive what is known as a DD 214 which is a Certificate of Release or Discharge from Active Duty. The DD 214 is issued by the United States Department of Defense upon a retirement, separation, or discharge from active duty from the United States armed forces.
What Are My VA Refinancing Options
Home Owners refinance their home loans for any number of reasons. Military homeowners can easily receive cash back on their Veteran Administration / VA loans. This additional cash can be used to make home improvements or to payoff medical bills and other debts. Two options for VA loan refinancing are:
VA Streamline (IRRRL) Refinance
The VA Streamline refinance loan is a great option for veterans with existing VA loans that are looking to obtain a lower interest rate. These loans are not required to obtain appraisals which, saves money and are offered at lower out of pocket expenses. In addition the VA Streamline loan allows the closing costs to be wrapped into the loan balance.
How Much Is The VA Funding Fee?
This VA loan funding fee is an upfront fee that is charged to every purchase and refinances loan. The fee today runs 2.3% of the loan amount, the fee for Veterans that have already used a VA loan is increased to 3.6% and can be reduced if a down payment of greater than 5% is put down towards the purchase. This fee is sent to The Department of Veterans Affairs and is used to cover losses of those loans that may have defaulted. Home buyers that receive any compensation for a service-related disability and surviving spouses that are qualified are also exempt from the service fee.
VA First-Time Home Buyers
First Time Home Buyers that can utilize their VA benefits have a great advantage in the market today.
VA loans are no money down home loans. If you forward your DD214 or Certificate of Eligibility, (COE) we will let you know what your loan will look like and how much you will be required to bring to the closing table.
Although VA loans are zero down, there are loan limits that are different across the country. Fill out the form to have a qualified VA loan officer discuss your loan options as a first time home buyer.
Being able to cash out for veterans allows Veterans to take out some of their home’s equity to pay for any home improvements, medical bills, emergencies, vacations or any other debts.
VA lenders will look for credit scores that are 620 or higher. For a cash out loan, closing costs cannot be rolled into the loan. Homeowners in certain states like Texas can encounter restrictions regarding cash-out refinance loans.
Ways That You Can Use Your Cash Back:
As a rule of thumb, there are not any restrictions in the ways that you can spend the money that you receive from a cash-out refinance. Some of the more popular uses of a receiving cash back include:
- Emergency Situations – this can involve emergency medical expenses or hospitalization.
- College Tuition – Each year tuition for colleges increases; the cash-out refinance can be of benefit in this arena.
- Home Improvements – Cash out can be helpful to increase your home’s value which later can give a veteran years of enjoyment and a better financial return on their initial investment. Most home owners will look to add on a room or upgrade their kitchen or flooring or even finish a basement.
- Paying down other debts – Whether you have other credit cards, loans or other debt, the cash-out refinance can help our veteran home owners become debt-free.
Veteran homeowners should always be on the lookout for special deals found on various advertisements online. These can sound great but most likely if they sound too good to be true they probably are.
Veterans have the option to pay out loans over a longer period of time to receive a lower interest rate by utilizing an FHA, conventional or USDA loan and utilize their VA benefit.
If you’re a Veteran and are looking to refinance, cash out refinance or are in the market to purcahse a new home there are numerous options available to you and in the market for a new home or a home-refinance, there are many options available to you. Many of these programs have lower interest rates and closing costs than other available loan types.