30 Year Fixed VA loans are a fantastic benefit for qualified veterans. Veterans can purchase a home with no money down at great interest rates and easier requirements than many conforming loans. There are also 10 Year, 15 Year, 20 Year and 25 Year terms available. The major key is that these loans meet required 'guidelines' set by the VA, the government agency that administers VA loans.

 

Interest rates do not vary much by risk, like conforming loans do, and are usually about 0.5% lower than conforming loans. 

 

VA loans don't have "Mortgage Insurance" (MI), but rather an upfront "Funding Fee". There is no monthly MI on VA loans. The upfront Funding Fee varies from 0.5%-3.6% of the 'Base Loan Amount' and is financed on top of the loan for a 'Total Loan Amount'. Most VA loans will have a Funding Fee of either 2.3% or 3.6% (see chart). Veterans with a qualifying service disability or a Purple Heart, are exempt and don't have to pay the Funding Fee.

 

On an owner occupied purchase, gifts are allowed from relatives, and sellers can pay some or all of buyer's closing costs and pre-paids to reduce funds needed to close. A Veteran doing a VA loan can truly buy a house with just a signature at times.

 

VA loans allow a Cash Out Refinance to 100% of value, as well as an extremely easy to get "Interest Rate Reduction Refinance Loan" (IRRRL) to lower the rate and payment. An IRRRL can refinance a current VA loan to a lower interest rate and payment with a very brief application and easy qualifications. We DON'T LIST employment, income, assets, nor liabilities (except for any mortgage) on the application. NO appraisal is done, no paystubs, no W2s, no bank statements. We run a "Mortgage Only" credit report with scores. Typically, we roll costs and set up of any escrow account in to the new loan. No out of pocket, or very little, and sign. An IRRRL is another great benefit for veterans as it makes it easy to refinance to a lower rate and payment.

 

While the VA guidelines are 100's of pages long, this brief description are some of the general requirements. There are restrictions and you can't necessarily combine parameters and get a loan. VA loans change requirements frequently. Requirements change without notice. Please call us to discuss your situation and goals. It is too complex to try and learn all the nuances on the internet.

 

VA LOAN LIMITS for 2021 (Price can be higher)

$4,000,000

 

PURCHASE:

Minimum Down Payment as a percentage of purchase price:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home          0.00%  

 

IRRRL REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home           N/A

 

CASH OUT REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home           100%

Pacific Sunset Mortgage, LLC. NMLS #1086349 ML-5769. Steve Emory Sr Loan Officer NMLS #45523. I am authorized to conduct business in Oregon and Washington States. 15455 NW Greenbrier Pkwy  Suite 100, Beaverton, OR 97006. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify and Not all applicants will qualify. Equal Housing Lender. All opinions expressed by Steve Emory, on this website, on his Facebook pages, are Steve's opinions and do not reflect the opinions of Pacific Sunset Mortgage, LLC. You should not treat any opinion expressed by Steve as a specific inducement to take a particular mortgage or follow a particular strategy, but only as an expression of his opinion. You must make an independent decision regarding mortgages or strategies mentioned on his website. Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial counselor. http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/1806349