Buying your first home is thrilling! But it can also feel overwhelming — between finding the right home and the right financing, the process can make anyone’s head spin. But veterans have a distinct advantage. So, if you’re a veteran of the military, we have great news for you: Your VA home loan benefit is one of the best ways to secure financing on your first home. At the Wendy Thompson Lending Team, we love working with VA loan first-time buyers because of the amazing benefits we know they’ll get. Here’s why you should consider a VA loan.
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1. Flexible Guidelines for First-Time Homebuyer with VA loanVA loans are one of the most accessible mortgage programs to qualify for — they have the most flexible underwriting guidelines out of any home loan option available. Because the VA guarantees the loan, lenders can offer flexible guidelines without worrying about losing their investment if the borrower defaults. And lenders pass that leeway on to you. Even if you have blemished credit or a higher than average debt-to-income ratio, you may still meet VA loan eligibility requirements. 2. Credit Score VA Home Loan Requirements 2021The VA doesn’t set specific credit score requirements. Instead, VA loan minimum credit scores are up to the lender to decide. With the VA backing the loan, most lenders, like us here at the Wendy Thompson Team, can get VA mortgages for borrowers with less-than-perfect credit scores. Here’s the thing: This doesn’t mean you can have terrible credit and still qualify. But we can work with you — even if you have credit blemishes — to get you approved. That’s because your credit score isn’t the only focus. We look at the big picture for VA loan first-time buyers. Your credit is just one piece of the puzzle.3. No Down Payment RequiredNot needing a down payment is one of the best things about a VA loan — and it’s probably the most significant benefit when comparing a VA loan vs. conventional loan. Conventional loans require at least 3% for first-time homebuyers, but a VA loan buyer doesn’t need a down payment at all. This allows you to buy a home much sooner than if you had to wait to save up a significant down payment. For example, suppose you found a $200,000 home. In that case, you’d need $6,000 minimum for a down payment (and that doesn’t include closing costs!). Because VA loans don’t require a downpayment, becoming a first-time homebuyer with a VA loan is much more affordable. 4. Fixed Monthly PaymentsVA loans offer fixed interest rates. Because your interest rate won’t fluctuate, neither will your monthly payments. That’s one of the benefits of a VA loan vs. conventional — a conventional home loan could come with a variable interest rate. Variable rates mean you may not know how much your mortgage payment will be from one year to the next. And that can make it hard to budget and keep up with your mortgage payments. But a fixed-interest-rate VA loan makes homeownership simple. 5. Lower Interest Rates than Other MortgagesSpeaking of interest rates, VA loans can offer more competitive interest rates than other mortgage options. And a lower interest rate has three significant benefits:
6. Fewer Closing CostsWhen working with one of the best VA loan lenders, you get the lowest possible closing costs. Because here’s the thing: The VA has a cap on how much you pay in closing costs. And less money out of your pocket can make your dream of homeownership happen sooner. 7. No Private Mortgage InsuranceIf you look at other government-backed loans, like an FHA loan, you’ll see they charge for private mortgage insurance (PMI). The same is true for conventional loans — you’ll pay PMI until you owe less than 80% of the home’s value. But there’s good news: VA loans don’t charge PMI. You pay a one-time VA funding fee upfront, but that’s it. You’ll never pay monthly mortgage insurance. This saves you even more money on your monthly payment and makes it easier to meet the VA home loan requirements in 2021.
VA Loan First-Time Buyers: Get Your Dream Home Today!If you’re a first-time homebuyer, consider using a VA loan. A VA loan offers excellent advantages you won’t find in other home loan options. After all, you worked hard to serve your country — you deserve affordable and flexible financing to buy your dream home. Contact the Wendy Thompson Team today to see how easy it is to pre-qualify for a VA loan. Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Don’t make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for a Home Loan' or call Wendy’s Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/va-loan-first-time-buyer/
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If youâre thinking of getting a VA home loan, youâve got to read this. The coronavirus pandemic has caused home sales to soar despite the increase in home sales prices in some parts of the country. And we see the impacts on VA mortgage financing, too. Hereâs why: Interest rates are at historic lows... Banks are changing procedures⦠Lenders are busier than ever⦠Added together, it makes a difference in how you apply for and secure a VA mortgage. Here at the Wendy Thompson Lending Team, we love to help our veterans. After all, who better deserves to achieve the American dream than someone who served our country? For more about how COVID-19 has affected your chances to get a VA mortgage, keep reading.
Interest Rates have Fallen
COVID-19 disrupted a wide range of industries in 2020, including banking and mortgages. As a result, interest rates started falling in the early months of 2020. Why did COVID-19 cause rates to fall? Great question. It started when the Federal Reserve lowered the target range of interest rates for federal funds to 0%-0.25% in March 2020 in an effort to stabilize the economy. Now, to clarify, the Federal Reserve doesnât set mortgage rates. But⦠The rate they set can have a huge impact on borrowing costs, which is why interest rates fell so quickly. Just how much did they drop? The average interest rate for a 30-year fixed-rate mortgage was 3.95% over the decade from December 2010 to November 2020, according to Federal Reserve Economic Data.But in December 2020, the average rate fell to 2.71% - a difference of nearly 1.25%! The drop from 3.95% to 2.71% can mean even bigger savings for VA mortgages. That can translate into thousands of dollars saved in interest over the life of a mortgage. On a $220,000 house, thatâs nearly $55,000 in borrowing costs that you donât have to pay for your 30-year mortgage!Mortgages are Harder to Get
Buying a home is rarely stress-free. Thereâs always another form or document or inspection that needs your attention. The right lender - one that knows VA home loans inside and out - can make becoming a homeowner easier... â¦but COVID-19 has caused a few roadblocks. Thanks to the pandemic, there are new factors standing between you and your VA home loan: Minimum Borrowing StandardsSome lenders changed their borrowing standards, making it harder to qualify. For instance, many lenders now require a 640 minimum credit score for a VA home loan.
Influx of VA Loan Applications
With falling interest rates, more and more people are pursuing the path to homeownership. Small Home Loans are Disappearing
The Pew Charitable Trust identified another potential roadblock: the number of mortgages for amounts below $150,000 fell between 2009 and 2018: But hereâs the thing: Discount Points are on SaleOne of the biggest expenses you pay with a mortgage is in the form of interest. Higher interest rates mean higher monthly payments and more money out of your pocket. sample VA loan Rates by Credit score: 600 to 620
*Updated 10/15/19 - Rates are based on a $250,000 loan with a 20% down payment. Rates change often and differ based on your state, down payment, and loan amount. Keep in mind that rates constantly change so it is best to contact us directly for the correct rate. What If You Want a VA Refinance Loan?Rock-bottom interest rates can make refinancing an attractive option. But refinancing got more expensive thanks to the pandemic. VA Mortgages and COVID-19: Your Next StepsThe pandemic has made some waves when it comes to getting a VA mortgage. But donât let those obstacles get in the way of your dream home. You can still buy a house with a VA home loan during the pandemic. And weâre here to help. The Wendy Thompson Lending Team is a top-ranked VA Loan and Mortgage specialist, and we work with active military, veterans and eligible family members to help secure a VA loan in all 50 states. Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Donât make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for a Home Loan' or call Wendyâs Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/how-has-covid-19-affected-va-mortgage-financing/ *Please note that effective April 3, 2020, we are no longer able to accept loans from applicants with a credit score below 640. Please visit our friends at My Credit Guy for help improving your credit score. Buying a home can be an overwhelming experience. Thereâs so much to do! One thing you can check off your list is worrying about current VA mortgage rates. The Wendy Thompson Lending Team has your back! Some lenders lure you in with the promise of better VA loan rates and pull the rug out from under you at the last minute. You wonât find any tricks here. Weâre only interested in getting you the best VA mortgage rate you can get.
CURRENT VA MORTGAGE RATESIf youâre looking for a home, the interest rate plays a big role in how much home you can afford. Interest rates can jump from one day to the next and it can depend on the loan amount, so be sure to check these resources too:
Here are samples of current VA interest rates you might find: sample VA loan Rates*Please note that effective April 3, 2020, we are no longer able to accept loans from applicants with a credit score below 640. Please visit our friends at My Credit Guy for help improving your credit score.
*Updated 6/1/2021 - Rates are based on a $250,000 loan with a 20% down payment. Rates change often and differ based on your state, down payment, and loan amount. Click here for correct rates based on your situation. Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate. WHO SETS CURRENT VA INTEREST RATES?VA loans are backed by the Department of Veterans Affairs to give eligible veterans and service members an affordable path to home ownership. What makes them so great? First of all, according to the Consumer Financial Protection Bureau, nearly 90% of VA loans are made without a downpayment. But one of the best features is that VA loans can get you a lower rate than if you went with a conventional mortgage. But do you know what? Even though the VA backs VA loans, they have nothing to do with setting the rates! Individual lenders set their own rates. Thatâs why it's so important to get hooked up with the right lender right from the start. Cutting half a percentage point off your interest rate can add up to thousands of dollars in savings for your 30-year mortgage. FACTORS THAT DETERMINE VA LOAN RATESNow that you know lenders set their own rates, youâre probably wondering how they come up with the numbers. They donât just pull VA mortgage rates out of thin air. Thereâs a lot that goes into determining what your current VA mortgage rate might be, such as: Hereâs more on how that works. CURRENT MARKET CONDITIONSWhen the money is flowing, and the economy is good, interest rates are usually lower. Market conditions rarely have huge changes from day to day, but lenders are always watching. At the very least, youâll probably see rates fluctuate by half a percentage point. But it could be more. Thatâs why we keep an eye on interest rates to get you the best deal.
VA MORTGAGE RATES BY CREDIT SCOREYour credit score is one of the most important factors that lenders consider. To get the best VA loan rate, we like to see homebuyers have a score of 640 or more. Higher scores can mean lower interest rates. Some lenders have limits on how low your credit score can be to qualify for a VA loan. But thatâs not all. While your credit score can determine your interest rate, you could get a lower rate by going with a different lender! Thatâs where we come in. Weâre focused on getting you a solid rate on a VA loan, so you make your dreams of homeownership a reality. VA LOAN TYPESThe type of loan you get is another factor in your interest rate. For instance, if youâre refinancing your home, your rate could be different than if you were buying a house. When youâre house shopping, keep one thing in mind: No matter the type of VA loan, you can get better terms than if you went with a conventional loan. REPAYMENT TERMYour repayment term is how long youâll make payments to pay off your loan in full. VA loans generally come with three choices: Interest rates tend to be lower with 15-year mortgages. Terms of 30 years are more popular among home buyers because they come with a lower monthly payment vs. a 15-year loan. HOW A 30-YEAR FIXED MORTGAGE WORKSA 30-year mortgage is a home loan that you pay off completely in 30 years. But thatâs not all. With a 30-year fixed mortgage, you also have a fixed interest rate that doesnât change with market conditions. Since your interest never changes, your payment will stay the same. And you know what that means? A stable monthly payment means you can create a better budget! READY TO SEE YOUR PERSONALIZED RATE?Current VA mortgage rates are a huge part of qualifying for a VA loan. Lower rates can save you tons of money over the 30-years youâre paying your mortgage. But your success depends on your lender. The wrong lender could cost you more than extra money â you could lose your dream home altogether! Contact the Wendy Thompson Lending Team. Weâll get you the best VA loan interest rate because weâre 100% committed to your satisfaction. Via https://thewendythompsonteam.com/30-year-fixed-interest-rates-for-va-loans/ Dealing with the VA and all of their processes can be frustrating, and that when you add finding a home, and getting the best mortgage to that list, things can get out of hand very fast. But here's the thing: Figuring out your VA loan eligibility doesn't have to be a complicated process and once you figure it out, all VA lenders will follow the same guidelines. In today's post I am going to go over what requirements you have to meet to become eligible for your VA loan. I will also discuss how to apply for your certificate of eligibility and the general steps you should take to apply for a Va Loan. "Every American deserves the dream of home ownership. HOW MUCH MORE SO do our VETS!!" What Is A VA Home Loan?A VA Home Loan is merely a loan product created to give veterans the ability to purchase a home without the need for a down payment. We love VA Loans because there isnât anyone more deserving of this type of loan than the people that protect and fight for our country. Even though these loans are guaranteed by the Department of Veterans Affairs, they are still generated through private lenders. This means there are still specific requirements a Vet has to meet before they can qualify and be eligible for this type of loan.
sample VA loan Rates by Credit score: 620 to 639
*Updated 6/1/21 - Rates are based on a $250,000 loan with a 20% down payment and a 30 year VA mortgage. Rates change often and differ based on your state, down payment, length of loan, and loan amount. Keep in mind that rates constantly change so it is best to contact us directly for the correct rate. Do VA Loans Require Mortgage Insurance? Since a VA loan is backed by the Department of Veterans Affairs, there isnât any PMI required. Will A VA Loan Have Funding Fees?Even though the VA loan comes with loads of benefits, you still have to pay a one-time funding fee. what is the Debt-to-income ratio?The debt-to-income ratio for a VA loan isn't set by the VA, they actually don't have a maximum ratio that you can't go above. However if your debt to income ratio is over 41% it makes it harder for the lender to get you approved for a loan. Your DTI ratio is part of the income requirements. For a complete review of income requirements for a VA loan, please see this article. Benefits Of A VA Home LoanService Requirements For VA Home LoansPlease see our article for an in depth review of service requirements for a VA Home loan. That said, we will provide the basics for you below. Service During Time Of WarService Requirements: At least 90 days active duty with other than dishonorable discharge Less than 90 days active duty if discharged for a service-connected disability Service Requirements: 24 months continuous active-duty with other than dishonorable discharge. At least 90 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge. At least 90 days active duty, and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty, or compensable service-connected disability. Less than 90 days active duty if discharged for a service-connected disability Service During Time Of PeaceService Requirements: At least 181 days continuous active duty, with other than dishonorable discharge. Less than 181 days active duty, if discharged for a service-connected disability. Separated from serviceService Requirements:
Active duty service personnelIf you are now on active duty, eligibility can be established after 90 days of continuous active duty. Upon discharge or release from active duty, eligibility must be reestablished. National Guard or Selected ReserveIf you are not otherwise eligible and you have completed a total of six credible years in the Selected Reserve or National Guard (member of an active unit, attended required weekend drills and two-week active duty for training) and one of the following: Spouse EligibilityYou may also be determined eligible if:
How To Apply For A VA Loan Certificate Of Eligibility (COE)Obtaining your Certificate Of Eligibility (COE) is the first step that you need to take before you start looking for a home. We will give you the basic steps below, but for a complete review of obtaining your VA loan certificate of eligibility, click here. The COE confirms to the lender that you are eligible for a VA-backed loan. Below we review the documentation you will need in order to verify your eligibility for a VA home loan, how to submit the paperwork, and how to obtain the COE. Documentation NeededThe documents you will need are going to depend on the type of your eligibility. Below we go over what you will need:
DD Form 214 - required to have a copy showing the character of service (item 24) and the narrative reason for separation (item 28). Active Duty Service Member A current statement of service signed by (or by the direction of): the adjutant, personnel office, or commander of the unit or higher headquarters showing:
Current National Guard or Reserve member who has never been in Federal active service A statement of service signed by (or by the direction of): the adjutant, personnel office, or commander of the unit or higher headquarters showing:
A Discharged member of the National Guard who has never been activated for Federal active service NGB Form 22, Report of Separation and Record of Service, for each period of National Guard service & NGB Form 23, Retirement Points Accounting, and proof of the character of service Discharged member of the Selected Reserve who has never been activated for Federal active service Copy of your latest annual retirement points statement and evidence of honorable service Applying For Your Certificate Of EligibilityNow that we have obtained all the information needed to apply for our COE, below are the steps you can take to apply. Apply onlineTo apply for your COE you will need to go through the eBenefits website. Apply through your lenderA majority of lenders have access to the Veterans information Portal. It is essentially an online application that can confirm your eligibility and issue a COE all online and almost instantly. The ability for this system to work usually will depend on how much information the VA already has on record for you. VA loan limits For 2020The maximum VA loan guaranty limits the value of a home that can be purchased with no down payment. In 2020, if you are a qualified borrower, you can generally buy a home with a value of up to $484,350 with no down payment, though the actual amount varies by county. One thing most lenders don't mention is that you can actually use up to that full amount benefit. For Example: You purchase your first home for $240,000, this leaves a remaining $244,350 left in house that you can purchase. This is a little known fact, but it is very effective if you are trying to purchase a second home. These guidelines mirror the single-family conforming loan limits established by the Federal Housing Finance Agency. Specific areas with higher-value properties have higher limits â and there are even higher value ceilings for Alaska, Hawaii, Guam and the U.S. Virgin Islands. Credit Score Needed To Qualify For A VA LoanThe VA Loan does not have a minimum credit score requirement. However, since private lenders are the ones taking the loans out, they have a minimum credit score for a VA loan. The minimum score is going to be around a 600, but if you really want to increase your chances of getting the a better rate, you probably want to be at least at a 640. (Especially in 2020 and later) Here you can learn more about what credit score you'll need for a VA loan.
*Updated 6/1/21 - Rates are based on a $250,000 loan with a 0% down payment and a 30 year VA mortgage. Rates change often and differ based on your state, down payment, length of loan, and loan amount. Keep in mind that rates constantly change so it is best to contact us directly for the correct rate. Click here for VA loan rates by credit score. As you can see, the higher you go up in your credit score the lower your APR is going to be. This in turn lowers your monthly payment and also will decrease your debt to income ratio requirement because your mortgage payment will be lower. I suggest putting a credit freeze on all of your reports once you have received a pre-approval for your loan because you don't want anything affecting your score. Not even yourself. Take Action!If youâre a current or retired military member looking to buy a home and choose to take advantage of the VA Loan program, you may be wondering the best mortgage company to go with. Be very careful here as any mortgage company can offer a VA loan, but few of them specialize in VA loans, and there are a lot of ways lenders can screw up your dream of owning a home. The Wendy Thompson Lending Team is one of the top ranked VA Loan and Mortgage specialist working with active military and veterans in all of the 50 States. Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Donât make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for VA Home Loan' or call Wendyâs Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/va-loan-eligibility/ Many active duty service members and veterans know that there is a VA program available to help finance their home loan with a zero-down payment. However, VA loan eligibility can be confusing and even intimidating to some. Multiple factors will determine if you will qualify for a VA home loan and we hope to remove the confusion of what is required for you to qualify for your zero-down home mortgage. We will discuss VA eligibility in regard to your credit score, VA loan limits and what VA loan types are available to you in this article.
What Credit Score Do I Need To Qualify For A VA Home Loan?The Department of Veterans Administration officially has no minimum credit score to be eligible for a VA home loan. However, private lenders are the ones who will approve you for a VA loan and their underwriting departments generally will not give you a loan unless you have a credit score of 620 or higher. A good broker like the Wendy Thompson lending team won't look at you solely as a number and sometimes can help raise that credit score quickly with a few tweaks. Your credit score will mostly affect the APR rate that you will qualify for your VA loan. The higher your credit score the better APR rate you will receive. The lower your APR rate is, the lower your monthly payments will be. The lower your monthly payments will result in you being eligible for a higher VA loan amount. So while a 620 credit score should get you in the door, if you discuss your score with the Wendy Thompson lending team, they will advise you on how to increase it and get a better APR rate! The top factors that may affect your credit score: If you do have a subprime credit score below 620, there are many resources that are out there to help you to get your score back on track. Don't hesitate to ask the Wendy Thompson lending team for assistance. What Are The Maximum VA Loan Limits?The title may be a bit misleading. The VA does not set a maximum loan limit that you can borrow. However, the VA does set a maximum loan amount that they will guaranty to the lenders. This means that if you exceed that fixed maximum loan amount then you may have to put money down to induce the lender to give you the loan. Most lenders expect you to put down 25% of the difference between the VA loan limit and the actual amount you end up borrowing beyond what the VA is willing to guarantee. The VA loan limits vary across the US based on how expensive the housing costs from county to county. Presently in 2020, the VA loan limit for the majority of the US is $484,350. Keep in mind that you will need to check with the Wendy Thompson lending team to find out the maximum VA loan limits in your area. Some counties have VA limits as high as $726,525 in 2020. That is a huge disparity between the low limit and the high limit in the US. What VA Loan Types Are Available?Purchase loanBy far the most common VA home loan program is the purchase loan option. This is where a veteran or active service member uses a VA loan to purchase a new home. The program was designed to help military families get into a new home without having to make a down payment. To qualify for a Purchase Loan you must meet the following qualifications: Native American Direct Loan (NADL)If you are veteran and either you or your spouse is a Native American, you may qualify for a Native American Direct Loan (NADL). The program is in place to help you buy, build, refinance, or make improvements to your home so long as it is on Federal Trust Land. To qualify for a Native American Direct Loan (NADL) you must meet the following qualifications:
*Updated 6/1/21 - Rates are based on a $250,000 loan with a 20% down payment and a 30 year VA mortgage. Rates change often and differ based on your state, down payment, length of loan, and loan amount. Keep in mind that rates constantly change so it is best to contact us directly for the correct rate. Interest Rate REduction REfinance Loan (IRRRL)If you qualify for a VA interest rate reduction refinance loan (IRRRL) you can refinance your existing VA loan and replace it. The main reason you would do this is if you have an existing VA loan has a higher interest rate than the present interest rates being offered. By reducing your interest rate using the IRRRL, it should lower your monthly payments and the amount of interest you will pay on your home over the life of the loan. To qualify for a Interest Rate Reduction Refinance Loan (IRRRL) you must meet the following qualifications: Cash-Out Refinance LoanRefinancing allows you to replace your existing loan with a new VA Cash-out refinance loan. There are many reasons you may want to take equity out of your home. You may want to refinance a non-VA back loan with a VA back loan while getting a lower interest rate and possibly lowering your payments. To qualify for a VA cash-out refinance loan you must meet the following qualifications: approval is easy with our "tactical va loan blueprint"If youâre a current or retired military member looking to buy a home and choose to take advantage of the VA Loan program, you may be wondering the best mortgage company to go with. Be very careful here as any mortgage company can offer a VA loan, but few of them specialize in VA loans, and there are a lot of ways lenders can screw up your dream of owning a home. The Wendy Thompson Lending Team is one of the top ranked VA Loan and Mortgage specialist working with active military and veterans in all of the 50 States. Unique only to the Wendy Thompson Lending Team is our easy 3 step plan: Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Donât make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for VA Home Loan' or call Wendyâs Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/va-home-loan-qualifications/ *Please note that effective April 3, 2020, we are no longer able to accept loans from applicants with a credit score below 640. Please visit our friends at My Credit Guy for help improving your credit score. If you’re shopping for a VA mortgage, you’re probably asking yourself the same question again and again. How much can I borrow? Well, you’re in luck. A VA mortgage calculator can help you figure out how much house you can afford. There’s just one catch. A VA loan calculator doesn’t tell the whole story. Though VA mortgages are backed by the US Department of Veterans Affairs, private banks and lenders issue the loans. And getting approved for a home loan depends on factors like your credit score, income, and current interest rates. If you get the wrong information, you could miss out on your dream house! Still, using a mortgage loan calculator is free, and it won’t hurt your credit score. Here are some of the best VA home loan calculators we’ve seen.
1. NAVY FEDERAL VA MORTGAGE CALCULATORNavy Federal is a top 5 VA lender. That’s why the VA loan calculator from Navy Federal is at the top of our list. With this VA loan amount calculator, you can select between a term of 15 or 30 years. How do you know which is best? A 30-year VA mortgage will stretch your payments out further. If you’re worried about your monthly payment, this is a good option because your monthly payments will be lower. But there’s a downside. You’ll end up paying more over the life of the loan because interest fees will also stretch out over 30 years. Try the calculator with a 15-year term and see the difference. You might be surprised. A 15-year VA loan doesn’t typically increase the payment a significant amount. It can be an affordable option for some homebuyers. Just keep in mind the Navy Federal VA loan calculator doesn’t factor in extra costs like:
2. USAA VA MORTGAGE CALCULATOROur number 2 pick for best VA home loan calculator is from USAA. To start, enter the purchase price of the home you want to buy. It also asks for the down payment amount and interest rate. I can hear you now: How do I know what the interest rate is? Luckily, I can help. Check out this handy list of sample interest rates by credit score. If you’re worried about a down payment, don’t be. One of the great things about a VA mortgage is you can buy with zero down. When you use the VA loan calculator by USAA, you’ll notice that your payment amount will be lower if you have a down payment. If you have the savings available, it’s a good option. But you can get a VA home loan without one. 3. PENFED VA MORTGAGE CALCULATORThe PenFed VA mortgage calculator is straightforward. It asks for the price of the home, down payment, loan term, and interest rate. There’s just one problem. It doesn’t take into consideration property taxes or home insurance. Why does that matter? Because taxes and insurance are a big part of your housing costs. And if you go with an escrow account? Taxes and insurance will be a big part of your monthly mortgage payment. Plus, remember that a mortgage calculator only gives you half of the story. It won’t tell you what your interest rate might be or check your credit score to see if you qualify for a VA mortgage. For peace of mind, contact the Wendy Thompson Lending Team, and we’ll give you the confidence you need to buy a home.
4. US BANK VA MORTGAGE CALCULATORIf you like details, you’ll love the US Bank mortgage calculator. It estimates your monthly payment based on several factors, including:
The calculator breaks down your payment into an easy-to-read circle graph. How does that help? You can see the real cost of the home compared to how much you’ll pay for taxes and insurance each month. But wait. There is one thing to keep in mind. It isn’t a VA loan calculator with funding fee, so you must factor that into the overall cost. Want help to increase your credit score? The Wendy Thompson Lending Team can do an in-depth assessment and tell you exactly how to improve it! 5. LOAN DEPOT VA MORTGAGE CALCULATORThe Loan Depot has two options to calculate your VA mortgage payment: Basic and advanced. The Basic option is the easiest to use. You enter the price of the home, down payment, term, and interest rate to see a sample monthly payment. If you want to include property tax or homeowner’s insurance, click on the advanced option. Just remember: Using a calculator to see how much house you can afford can be misleading. It can give you an idea of what a monthly payment might be based on a home price. But an online VA mortgage calculator won’t tell you if you’ll be approved for a loan or not. That’s because it doesn’t consider your credit score, income, or other information. If you’re serious about wanting to buy a home, you need a real answer. Contact the Wendy Thompson Lending Team today! Unique only to the Wendy Thompson Lending Team is our:Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Don’t make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for a Home Loan' or call Wendy’s Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/5-best-va-mortgage-calculators/ VA loans are one of the best financial benefits available to veterans. They have many benefits, including no down payment, flexible underwriting guidelines and no mortgage insurance. Millions of veterans use the program. But sometimes, a conventional loan makes more sense for veteran borrowers. If you’ve already got a VA loan, you may want to switch to a conventional loan. How does that work? And when does it make sense? Great questions. This guide will walk you through how to refinance a VA loan to a conventional loan and when it makes sense to do it.
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CAN I REFINANCE MY VA LOAN TO A CONVENTIONAL LOAN?Yes, refinancing a VA loan to a conventional loan is possible. But here’s the thing: When asking yourself can I combine a VA loan with a conventional loan, remember… It only makes sense in certain situations. Before we get into that, let’s look at how to qualify. Conventional loans have stricter guidelines. You typically need a higher credit score, lower debt-to-income (DTI) ratio, stable income and employment. Now, what about the reverse? If you already have a conventional loan, can you refinance your conventional loan to a VA loan? It’s not common, but you can. FIND OUT IF REFINANCING IS RIGHT FOR YOUBefore you decide to refinance it is important to consider all the factors from the small details to the big picture. If you chose the wrong time it can cost you money, time and some sanity. The Wendy Thompson Team is here to help you make the right choice for your family. SHOULD I REFINANCE VA LOAN TO CONVENTIONAL LOAN?If you have a VA loan, you might be wondering should I refinance a VA loan to a conventional loan. There’s a lot to consider. First, consider your finances. Can you afford the conventional loan? If you don’t have at least 20% of equity in a conventional loan, you’ll pay private mortgage insurance (PMI). And that may increase your payment, so make sure it’s affordable. Next, look at your credit score. Lenders typically require a higher credit score for a conventional loan. You’ll usually need a score of at least 660. However, some lenders may still approve your loan with a lower score, but you may end up with a higher interest rate. Finally, look at the rates. If interest rates dropped, it might make sense to refinance a VA loan to a conventional loan. It doesn’t have to be a drastic difference. A rate that’s just 0.25% lower can save you thousands of dollars over the life of the loan. REASONS TO CONSIDER REFINANCING A VA LOAN TO CONVENTIONALIf you qualify to refinance a VA loan to conventional, next think about if it makes sense. Here are a few common reasons our borrowers choose to do it:
HOW TO REFINANCE A VA LOAN TO A CONVENTIONAL LOANThe Wendy Thompson Team makes it easier than ever to refinance a VA loan to a conventional loan. Here’s how. 1. Make sure you have some equityLenders may not require you to have 20% equity in your home, but it can help. Otherwise, you’ll be forced to pay PMI, which can add up to $100 or more to your monthly mortgage payment. If you’re not sure about your home’s value, we can help you get an estimate, so you know where you stand. 2. Check your credit scoreYour credit score is a substantial factor when getting a new loan. Higher scores can unlock the most competitive rates. Check your credit history for free at AnnualCreditReport.com, and try to fix any credit issues before you apply. 3. Lower your DTI ratioYou’ll need a low-to-average debt-to-income ratio. Lenders like DTI to be around 36% for the lowest rates, but you may qualify with a ratio slightly higher, too. 4. Shop aroundOnce you’ve maximized your qualifying factors, shop around for the best loan. Want to get prequalified? We can help. The Wendy Thompson Team is here to help you secure the best rates and terms on your VA loan to conventional loan refinance. 5. Process and close the loanOnce you’ve chosen a refinance option, it’s time to apply for the refinance loan. Lenders will ask for your financial information and a formal home value appraisal. To speed up the process, use a reputable lender. We know what lenders want when processing your refinance application and can help you get to closing faster. ALTERNATIVE OPTIONS TO REFINANCE YOUR VA LOANHow hard is it to refinance conventional to VA loan? Well, there are a few requirements. But if you don’t qualify to refinance a VA loan to a conventional loan, don’t sweat it. You have a few other options:
READY TO REFINANCE VA LOAN TO CONVENTIONAL?If you’re ready to refinance a VA loan to a conventional loan, let the Wendy Thompson Team help. We have many years of experience helping people just like you save money, tap into your home’s equity and get the mortgage financing you need. Call us to get prequalified today! Via https://thewendythompsonteam.com/refinance-va-loan-to-conventional/ Deciding between a VA and conventional loan when youâre a veteran seems like a no-brainer, right? No money down and no mortgage insurance with a VA loan sounds like the best deal. But wait⦠The decision might not be so easy. While a VA loan is good, sometimes a conventional loan makes more sense for veterans. To help you decide, weâve got the guide right here. Letâs answer the question of Is a conventional loan better than a VA loan?
CONVENTIONAL LOAN VS. VA LOANFirst, letâs take a big picture look at conventional loans vs. VA loans. Conventional loans need you to put at least 3% down as a down payment. Although putting down 20% is ideal. Thatâs because if you put down less than 20%, youâll pay private mortgage insurance (PMI). Itâs an extra cost that goes away once you owe less than 80% of the homeâs value. Because the government doesnât back conventional loans, they have tougher qualifying guidelines. Lenders might have credit score requirements and stricter guidelines for your debt-to-income (DTI), too. But theyâre generally available to everyone. On the other hand, VA loans are only available to veterans and their spouses. Theyâre also backed by the government. If a veteran defaults, the VA picks up part of the tab. This allows VA lenders to have more flexible guidelines, including not having a down payment or paying mortgage insurance. Is a VA loan better than a conventional loan? It depends. Here are the key differences. PROPERTY TYPE
The property type you choose is the most important piece of the puzzle when deciding between a conventional vs. VA loan. If youâre buying a home for anything but your primary residence, a VA loan isnât an option. Thatâs because VA loans can only be used for owner-occupied properties. VA loans have stricter appraisal guidelines, too. And thatâs one reason why sellers hate VA loans... All homes must pass the VAâs minimum property requirements to ensure it meets value and is safe, structurally sound and free of health hazards. While these are things youâd want in a home, the property type can slow down or stop the homebuying process. DOWN PAYMENT
VA loans donât have a down payment requirement. Thereâs just one exception to that: if you bid more than the homeâs value, your down payment may need to make up the difference between the appraised amount and the purchase price. Conventional loans require at least a 3% down payment. You might need to put down more, but it depends on your qualifying factors. Remember that youâll need at least a 20% down payment to avoid paying PMI. Whether you go with a VA loan or a conventional loan, higher down payments can save you money in the long run. Hereâs why: The more money you put down, the lower your payment and the less interest you pay over the life of the loan. FEES
VA loans generally require you to pay a funding fee. For first-time use, most veterans pay 2.3% of the loan amount. But if you put at least 5% down, the funding fee drops to 1.65%. Thatâs significant savings on a VA loan. Conventional loans donât require funding fees and can be the cheapest way to borrow money for a home. MORTGAGE INSURANCE
VA loans donât have mortgage insurance. Thatâs true even if you take advantage of the 0% down payment option. Conventional loans charge PMI if your down payment is less than 20%. The amount you pay for PMI depends on your credit score, DTI ratio and down payment size. So, how much will you pay? You can usually expect to pay around 0.58% to 1.86% of the original loan amount for PMI. CREDIT SCORE
You might have heard that VA lenders donât look at your credit score. But that simply isnât true. VA lenders can use credit scores as part of the application process. The minimum score you need can vary from lender to lender. Although VA loans tend to have lower credit score requirements than conventional loans, higher credit scores generally mean better loan terms. DEBT-TO-INCOME RATIO
Ideally, veterans wonât have a DTI ratio over 41%. You may need some compensating factors like great credit or liquid assets on hand to make up for it if you do. Conventional lenders can require a slightly lower DTI of around 36%. But hereâs the thing: It depends on the lender and your other qualifying factors. So donât let your DTI stop you from going after your dream of being a homeowner. MORTGAGE INTEREST RATES
VA mortgage interest rates may be slightly lower than conventional rates. And lower interest rates can save you thousands of dollars over the life of the loan. But rates vary from one lender to the next, so donât let it become a hurdle. Shop with different lenders and get pre qualified for a mortgage when buying a house to make sure you get the best rate you can.BENEFITS OF A VA LOAN OVER CONVENTIONAL LOAN
Choosing a VA loan over a conventional loan is a big decision. Many people wonder, is a VA loan worth it? Here are some of the benefits: WHAT ARE THE DISADVANTAGES OF A VA LOAN?
While a VA loan sounds pretty great, there are some downsides. When asking Is a VA loan really worth it, here are a few drawbacks to consider: IS A VA LOAN BETTER THAN A CONVENTIONAL LOAN?Is a conventional loan better than a VA loan? What loan is best for you comes down to personal preference, property type and qualifying factors. A VA loan might be a good choice if the house can pass the strict appraisal requirements and you plan to use it as your primary residence. A conventional loan might be better to avoid additional fees, even if you can only put 3% down and end up paying PMI. Buying a home is a big decision. If youâre not sure what loan program to use, the Wendy Thompson Team is happy to go over your options. Weâll walk you through the process and help you see the big picture to know which option is right for you. Via https://thewendythompsonteam.com/conventional-loan-vs-va-loan/ |
About UsWe want you to understand your options and pick the right VA Loan, because what you qualify for and what you’re comfortable with are 2 different things! You can start the VA mortgage process online with our pre-qualification tool, or call us. A 15-minute phone call will answer a lot of your IRRRL questions and set you on the right path. ArchivesNo Archives Categories |