DEL MAR – November 12
2012 : Goooooood Monday morning Sannnn Dieeeggo! And especially good morning and happy Veteran’s Day to all Vets and active military across the ole
U. S. of A, as well as those serving overseas! I thought it appropriate to use
today’s column to talk about some of the wonderful advantages Vets and eligible active military have in regards to pursuit of the American Dream of home ownership.
The VA(Department of Veteran’s Affairs) mortgage home loan affords a number of
benefits comparative a conventional loan. Here’s the best of the best
highlights:
~ Purchase a home for up to $417,000 with absolutely no down payment.
Conventional loans require down payments from 5% -20%.
~ Unlike most other kinds of mortgage lending these days, VA loans are
not primarily based on the applicant’s credit score, and thus afford low rates
comparative to prospective mortgagors(borrowers) with stronger credit
portfolios who are ascertaining conventional lending. AND the same low rate applies,
irrespective of down payment, whether 10% down payment or no down payment at
all.
~ There is no
prepayment penalty on a VA loan, which means the mortgagor can refinance or
sell at any time without having to pay a penalty.
~ VA loans allow mortgagors a higher debt-to-income(DTI) ratio than do conventional loans. DTI is a crucial factor in the loan qualification process, and many prospective mortgagors will only qualify due to the added percentage points afforded by a VA loan on DTI.
~ With a VA loan the seller is allowed to pay all of the closing costs of the prospective mortgagor, up to 6%, in fact. A conventional loan only allows the lender to pay closing costs up to 3% of the loan amount.
Jay’s Outlook: The Future looks bright for Vets!
