Pembroke Pines VA home loans are provided by private lenders such as Kloze. These private lenders include mortgage companies as well as banks. The U.S Department of Veteran Affairs is responsible for guaranteeing a portion of the loan against loss. This guarantee makes it possible for lenders to offer borrowers more favorable terms.
A Pembroke Pines VA home loan can be used to purchase a home that is already constructed or one that is under construction. The home should serve as a primary residence for the borrower.
A VA home loan can also be used to refinance an existing loan.
There are many benefits a borrower stands to gain by applying for a VA home loan. This includes:
Reusable
This means that any eligible borrower can enjoy the privilege of using a VA home loan more than once. In fact, it is possible for a borrower to have more than one active VA loan during the same period.
No Mortgage Insurance Requirements
Mortgage insurance fees are usually an obstacle for many homebuyers. Private mortgage insurance is usually applied to a mortgage to protect the lender from risk of default. However, in the case of a VA home loan, the mortgage is already guaranteed by the U.S Department of Veteran Affairs which eliminates the need for the insurance.
Private insurance can cost $150 a month on a $250,000 mortgage. However, for a VA home loan borrower they are able to purchase a home that goes for $280,000 since they don’t have to pay PMI.
No Down Payment Requirements
Unless in special circumstances such as the lender requires a down payment or the buying price is greater than the reasonable value of the property, VA home loan borrowers are not required to make any down payments on homes they purchase.
One-time VA funding fee
The VA funding fee is a fee that is applied to every refinancing loan or purchase loan. The proceeds from VA loans help cover losses that the VA incurs from the loans that go into default.
Every now and then there will be changes that are made to the VA fees. These changes are contingent upon a number of factors including whether the borrower has made a down payment, whether the borrower has a prior VA loan, as well as the nature of the borrower’s service.
Veterans who receive disability compensation for disability associated with their service are exempt from the VA fees. Also, regular military members pay slightly lower funding fees than the National Guard and Reservists.
For those who pay the VA funding fee, it is a one-time fee, so borrowers need not be concerned with having to make recurring payments.
VA Home Loan Eligibility
The following groups of people are eligible for a VA home loan:
- Service members on active duty that have served for the stipulated minimum period
- Veterans that meet length of service requirements
- Surviving spouses of deceased veterans
- Reservists and national guard members
Home Ownership Costs
Before beginning the process of buying a home, you will need to familiarize yourself with the true cost of owning a home. By planning ahead you will have a better idea of how much you can afford and prevent the shock of having to deal with unexpected costs.
An efficient way of preparing yourself for homeownership is by reviewing your spending patterns using resources on the Consumer Financial Protection Bureau.
During this time you should also make considerations on what is most important to you and your family when buying a home. Such factors might include, nearby amenities for example entertainment and shopping, work commute, and quality of local schools.
VA Home Loan Application Process
The first step is to determine if you are eligible for a Pembroke Pines VA home loans.
If you qualify for the VA home loan the next thing to do is to apply for the Certificate of Eligibility. This document proves to the lender that you qualify to borrow under the VA home loan program. The Certificate of Eligibility can be downloaded from the eBenefits portal. Kloze can also download it on your behalf.
The third step is to compare and choose a lender. To get the best deal it is always recommended that you reach out to several lenders to find the best rates and become pre-approved. Kloze Home Loans has the best VA home loan rates in Pembroke Pines.
If you do not know where to start, use the resources offered on the Consumer Financial Protection Bureau. Use these tools to explore different loan types, shop lenders as well as comparing different loan offers.
You need to be aware that some lenders charge a 1% flat rate fee also known as a loan origination fee. In addition, the borrower might be asked to pay for the following:
- Recording fees
- Flood zone determination
- Survey
- Compliance and appraisal inspections
- Hazard insurance
- Prepaid items
- Credit report
- VA funding fees