“The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive veterans of early wars were treated and appreciated by our nation.”
— George Washington
During the Veterans Day celebrations we want to let those who served know how much we appreciate them by sharing some good news: According to the Department of Veteran Affairs, the number of VA loans guaranteed under the G.I. Bill by its Loan Guaranty Program is now 630,000. This means that more than 300% more veterans are purchasing home with their V.A. loans since the housing downturn.
V.A. Loans are sitting between three and four percent and allow for up to 100% financing of your home loan. Translated that means … NO DOWN PAYMENT. This no-money down feature allows military borrowers to buy instead of rent without having to save up that large chunk of money first.
In addition, unlike other government guaranteed loans, the V.A. loan does not require mortgage insurance (also known as PMI or Private Mortgage Insurance), which reduces your monthly outgo.
You can use your V.A. loan to purchase your primary residents (the home you live in for most of the year). So, if you plan to spend more than six months in the warmer southern states, you can use your V.A. loan to purchase the home you plan to retire to.
There’s good news for Reservists too!
Those Reservists or men and women in the National Guard having completed six years of service are eligible for this benefit. In fact, if you served on active duty during wartime, your eligibility might be even shorter … as few as 90 days. This means that many more veterans might be able to get into a home sooner than they think.
Reduce your interest rates
If you’ve already used your Veterans Affairs Home Loan benefits, you might be eligible for a reduction in your interest rates. Check out the Interest Rate Reduction Refinance Loan (also available through the U.S. Department of Veterans Affairs, to see if refinancing your loan might be useful to you. Some special features of the IRRRL are that it doesn’t require an appraisal or credit underwriting package and the fees and other costs of the loan can be absorbed into the loan or by accepting a high enough interest rate to allow the lender to take care of the costs.
Another advantage of the IRRRL is that you do not need to be living in the home now. You only need to certify that you lived in the home previously (when you obtained the original V.A. loan on the home). That means that if you’ve turned it into a rental or are allowing your children to live in it, you can still refinance it with this loan.
If you have questions about buying a home or need information about a lender that handles V.A. loans, your real estate professional can help. Just give us a call.
“On this Veterans Day, let us remember the service of our veterans, and let us renew our national promise to fulfill our sacred obligations to our veterans and their families who have sacrificed so much so that we can live free.”
If you have questions regarding Santa Cruz County real estate, homes for sale, or how to get the best results when listing your home or condo for sale, just call me, Hyko Roppel at (831) 247-3803 or email me.
Thanks for reading & have a great day in Santa Cruz County or wherever you call home!