Shopping For A Lender

Is it true VA loans are easier to get these days?

It’s not only true, it seems to be real estate’s best kept secret. Guaranteed mortgage loans for veterans are a lot easier to obtain since the Veterans Administration made its procedures more user-friendly a few years ago.

Some key changes in the VA Home Loan Guaranty Program are:

• the seller no longer has to pay points for the buyer, and
• the VA no longer sets interest rates.

More people than ever are now eligible for VA financing, thanks to recent changes in the VA-guaranteed home loan program. Recent changes include:

• Members of the National Guard and Military Reserve who have served at least 6 years are now eligible for VA financing.
• Loan rates can be negotiated between the lender and veteran, whereas rates used to be set by the government.
• The fee to refinance a VA loan has been lowered from 1.25% of the loan amount to 0.5% (half of 1%).

Also, thanks to a new ruling, VA buyers can now pay their own VA loan fees or points. Before the change, VA points could only be paid by sellers – which meant some sellers were turning away VA borrowers to avoid the extra costs.

The VA loan program can help qualified veterans save money when buying a house because the vet can buy a home with no down payment and no monthly mortgage insurance. The debt-to-income proportion can be as high as 41%, and up-front costs are lower. Vets can borrow up to a specific ceiling, and the loan is assumable. Check with your lender for full details.