|
Arizona is home to more than 560,000 veterans, thanks in part to its terrestrial beauty and four military installations. Veterans nationwide, including the Grand Canyon State, are taking notice of the overwhelming benefits in the Veterans Administration home loan program. More than 6,300 home loans in Arizona are guaranteed by VA at a total value of $1.4 billion. Last fiscal year, VA covered about $68 billion in single-family loans. Lenders issue VA loans, while VA simply insures about one quarter of the loan against unlikely borrowers’ defaults. Because of this insurance, lenders are more than willing to help veterans get the loan they deserve. Unfortunately, of the 24 million veterans less than 10 percent has utilized this program. That’s an astounding figure considering the unrivaled advantages of VA loans. In Arizona, veterans can pay no money down for a loan of up to $417,000. Borrowers also have the chance to negotiate interest rates, which are sure to be lower than those of conventional loans. Refinancing VA loans, either with a VA streamline or cash-out option, lets borrowers lower their interest rates. There are even more gains, such as: -Ability to prepay a loan without penalty -Borrowers in default get extensive assistance to avoid foreclosure -Sellers can pay up to 6 percent of closing costs -No private monthly mortgage insurance Clearly, our nation’s heroes took notice of these upsides, causing VA loan volume to spike 80 percent last year. Renowned for its natural beauty, Arizona is surely a place for veterans to settle post-duty. Those who may qualify are usually in one of three categories: -Military members who’ve served 181 days on active duty or three months during war time. -People who have spent at least a half-dozen years in the National Guard or Reserves. -Spouses of those killed in the line of duty. How does the VA help? No Money Down VA Loans do not require money down. So, that $8,000 tax credit can be used for some other benefit. Put it in the savings account or use it for mortgage payments. And the greatest part is service members do not have to pay back the tax credit. So, it truly is a benefit. Lower Interest Rates A VA loan could potentially save you $75 each month on mortgage payments. Why? Because lenders will offer great interest rates since the Department of Veteran Affairs secures the loan. No Private Mortgage Insurance (PMI) With conventional loans, mortgage insurance can cost an extra $100 to $700 per month! Steering clear of that is one of the biggest advantages of the VA program. Receive $417,000 or More on a VA Loan Although only $417,000 is financed with the VA loan program, larger amounts up to $729,000 are sometimes available. Once again, if your prospective home does cost a little bit more than you bargained for, VA loans allow veterans to use gifted or borrowed funds. Qualifying A lending counselor can help a service member gather all the necessary documentation needed for a VA loan. The service member must be able to prove that they served in the military for 90 days during wartime and 181 days during a time of peace. He or she must have been honorably discharged. If you do have bad credit, a VA loan counselor can help you work your way back up to financial health without you having to put your home buying dreams on hold. Prospective home buyers may also be able to take advantage of the $8,000 tax credit program, which has a year-long extension for qualified active-duty service members. Those who meet the eligibility criteria have until April 30, 2011, to purchase a home and until June 30, 2011, to close. VA loans have helped more than 18 million veterans become homeowners since 1944. Today, these flexible loans are more popular than ever and headed for a huge year after loan volumes surged a whopping 80 percent in 2009. There are some new changes headed for government-backed loans in 2010 for both homebuyers and brokers. These changes are part of a government effort to increase protections for consumers. About 80 percent of VA borrowers could not have qualified for a conventional loan. And these loans offer more financial benefits and incentives than almost any other on the market. Among those benefits are: -No private monthly mortgage insurance -No penalties for loan pre-payment -Higher debt-to-income ratio allowed than for most conventional loans -Sellers can pay up to 6 percent of closing costs and concessions But the program’s No. 1 benefit is that military buyers in most parts of the country can purchase a home worth up to $417,000 without putting down a single dollar. That figure is actually higher in more expensive parts of the nation. To read more about VA Mortgage Guidelines, visit http://homeloans.va.gov/. |
