The VA Loan program was established in 1944, as part of the Servicemen’s Readjustment Act, to help American veterans obtain home loans where private financing may not be available. VA Loans are mortgages that are partially guaranteed by the U.S. Department of Veterans Affairs (VA). This guarantee makes it possible for Veterans to receive very favorable loan terms and conditions such as 100% financing and no mortgage insurance premium. New Horizon Mortgage is dedicated to serving each and every one of our veterans throughout San Antonio, Austin, and Round Rock.
Since the establishment of the VA loan over 70 years ago, The Department of Veterans Affairs has guaranteed more than 20 million loans. Most veterans, military, and spouses of deceased military members are eligible to apply for a VA loan. In order to qualify for the program, borrowers will need to meet certain credit and income requirements. A Certificate of Eligibility (COE) must also be acquired before applying for a VA Loan. Veterans will find there are many advantages that the VA loan program offers.
Benefits of a VA loan:
- No down payment if the appraised value is not greater than the sale price.
- No private mortgage insurance (PMI) premium.
- No pre-payment penalty.
- Closing costs are limited by VA regulation.
- VA funding fees (up to 3.3%) can be financed with the loan.
- The VA Loan is an assumable loan.
- Up to $417,000 loan amount. This can be higher in certain counties.
VA loans are available for many different circumstances and individual borrower needs. The most common types of VA loans are:
- Purchase Loans – These types of loans allow veterans to purchase a primary residence at a competitive interest rate. VA Loans cannot be used solely for investment or rental property purchases. The borrower must live in the purchased residence.
- Cash Out Refinance Loans – This alternative loan is available for Veterans who have already purchased a home, yet need cash for things such as home improvements, schooling, or managing certain debts.
- Interest Rate Reduction Refinance Loan (IRRRL) – Veterans can refinance existing VA loans can at a lower rate through this program. This type of refinancing is also referred to as a Streamline Refinance Loan.
There are many resources and loan programs available to American veterans. At New Horizon Mortgage, we specialize in helping the many Veterans throughout Texas find the financing they need. Whether you are looking to purchase your very first home, or are looking to refinance an existing VA loan, our team of experts is here to help you. For more information on VA loans and the many financing options available, contact us today.