You can experience how refinancing can lower your monthly payment and allow you to get back your cash with no credit check or income verification. The Veterans Affairs Mortgage Center provides you with different services from other service providers.
Up to 18 Million home loans have been insured by the Government. Because there is no private mortgage insurance (PMI) needed, the mortgage payment goes to the loan amount, which allows larger loans with the same amount of payment.
With lower rates of VA loans, veterans are able to get the best rates on mortgage loans than through any other source. These loans can be issued by qualified lenders and are a valuable source to provide long-term financing to the American veterans or to their surviving spouse.
The main objective of the Vetaran's Affairs home loan program is to contribute home financing to the available qualified veterans in particular areas generally where all private financing services are not available. Moreover, the purpose is to help veterans to purchase properties with no down payment.
VA Loans give 100% financing to the veterans without any private mortgage insurance or else 20% second mortgage. Veterans have to pay 0 to 3.3% of the total loan amount as a funding fee to the VA.
During purchase, Veterans can also borrow up to 100% of the Sale Price or else reasonable value of the home, whichever is less among both.
In the case of refinancing, veterans can borrow up to 90% of the reasonable value, or the highest amount that allowed according to state laws.
Veteran's Affairs loans permit Veterans to qualify for the loan amount bigger than traditional Fannie Mae or conforming loans.
As of the 1st of January, 2006, the maximum VA loan amount with no down payment is $417,000. This amount can even be up to $625,500 for particular high cost areas. The Department of Veteran's Affairs expects the seller to pay the entire closing cost as long as the cost does not exceed to 4% of the sale price of the home.
The government will only insure a mortgage where the monthly payment for the loan is no more than 41% of the veteran's gross monthly income as to avoid getting the person into debt. But the general rule is that a mortgage payment should never be higher than 33% of your monthly income.
At present, the Veterans Housing Benefits Improvement Act of 1978 has prolonged and greatly increased the number of benefits available to the millions of American veterans who have valiantly served our country.
About the Author
Low VA Rates (http://www.lowvarates.com) has great information on how to obtain a VA loan. VA Home loans are a great way for veterans to get the perfect home. Art Gib is a freelance writer.
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