100% Financing Va Loans With No Mortgage Insurance

By Author: Spencer Llewellyn
Total Articles: 3698
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VA guaranteed loans are made by private lenders to eligible veterans for the purchase of a home which must be for their own personal residence. The guaranty means the lender is sheltered against loss if you or a later owner neglect to reimburse the loan. The guaranty replaces the protection the lender generally receives by requiring a down payment allowing you to acquire favorable financing terms.

You do still have to qualify to obtain a VA loan. VA uses two methods for revenue qualification purposes. The primary system of evaluating a veteran's earnings is the residual income method. Under this method, the underwriter determines that a veteran has sufficient income to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. VA also uses a debt-to-income ratio method like many programs. However, VA uses only one ratio (41%) which is the ratio of total debt (both housing and other debt) to income. Your credit background will be fairly considered. At least a 620 FICO credit mark is very valuable to attain a VA approval.

VA mortgages involve ...
... no down payment up to $417,000, which is the conforming loan limit for 2008 is ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans could get a no down payment purchase loan for those amounts. Highest Finance Amount: The maximum loan amount permitted for a VA mortgage varies from county to county. The highest maximum VA mortgage right now is $1,094,625. The lowest maximum VA mortgage amount available in any county is $417,000.

If you already own a home, so you're at least fairly familiar with the mortgage process. If you've never refinanced through VA you might think that it's more complicated because you're involved with a government agency. Well, you'll be pleasantly amazed to learn that a VA Refinance loan is genuinely no different than than the method of refinancing with any other loan. Of course, you have many more protections and it will be easier to get qualified with VA.

One of the most important advantages of an VA loan is the ability for the loan to be assumed. This gives the buyer a significant benefit in a high interest rate market. VA loans are eligible for streamlined refinance, a program that allows the borrower to easily refinance the loan to reduce their interest rate and lessen their monthly payment.

Did you know that you can refinance your current mortgage to a VA home loan to lower your monthly payments, get money out of your home, consolidate debt and obtain a fixed-rate mortgage? Compare your VA refinance loan options today — it's simple!