In honor of Veterans Day on November 11, RE/MAX Broker Associate Kathy LeMay lists the top 5 benefits of the VA loan program.
Westminster, CO (PRWEB) November 04, 2015
“As the wife of a retired U.S. Air Force veteran, I understand the frustrations of buying and selling real estate in unfamiliar areas and often from long distances, having relocated fourteen times in twenty-five years,” said Kathy, a member of the Veterans Real Estate Benefits Network (VREB). “I also know the active-duty lifestyle has unique demands, including those pertaining to real estate. Because of this, I am a strong advocate of the VA loan program, which has numerous benefits.”
No. 1: VA loans require no down payment. The VA, however, does charge a funding fee for the loan, which can be financed. For a first-time VA user, the funding fee is currently 2.15 percent. In this case, the veteran can finance up to 102.15 percent of the loan value. For subsequent users, the funding fee is 3.3 percent. In this case the veteran can finance up to 103.3 percent of the loan value. If a veteran has a minimum of a 10-percent disability from the VA, this funding fee can be waived.
No. 2: VA loans do not require mortgage insurance. “Conventional loans require private mortgage insurance for loan to value (LTV) in excess of 80 percent, while Federal Housing Administration (FHA) loans require an upfront mortgage insurance premium (MIP) at closing,” said Kathy. “An additional MIP is paid for a period of time, which varies depending on the down payment for the FHA loan.”
No. 3: VA loan qualifications may be easier than traditional loan products. While the VA sets no minimum credit score, individual lenders typically require a minimum credit score of 620; additionally, the VA will insure a loan with 41 percent of monthly income going towards the mortgage (minus any other monthly debts). Conventional loan products allow for 28-31 percent of monthly income dedicated to the mortgage.
No. 4: VA loans have no maximum limit. Keep in mind, however, that there is a maximum with no down payment: $417,000, or $1,094,000 in certain high-cost counties.
No. 5: VA loans may be prepaid without penalty. This means a veteran can pay the loan in full prior to the life of the loan penalty-free, which is not always the case with other loan products.
“It is my passion and life experience to help military families, and as a Realtor®, my duty to navigate them through the VA loan program,” said Kathy. “I am also a proponent of the VREB Network because when a veteran joins this organization, which is free, they receive a portion of the real estate commission on the sale or purchase of a property back as a benefit of membership.”
About Kathy LeMay, RE/MAX Alliance
RE/MAX Broker Associate Kathy LeMay specializes in military relocation, buyer brokerage, new construction, and short sales. Kathy serves the Westminster, Arvada, Northglenn, Wheat Ridge, Thornton, Broomfield and Brighton, CO areas. For more information, please call (303) 565-0884, or follow her on Facebook. The office is located at 9737 Wadsworth Pkwy., Westminster, CO.
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