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VA Loans are designed to serve those who serve us

I hope everyone had a safe and happy 4th of July weekend.  I hope you had the opportunity to spend time with family and friends and remember those who fought for the freedom that allows us all the opportunity to enjoy the 4th of July weekend.

In honor of our veterans, I would like to discuss a specific type of loan that is designed to protect and assist our veterans and their spouses in purchasing a home.  This loan is called a Veteran Affairs (VA) loan and it is available to any veteran who has served our country.  To qualify for this type of loan, a veteran must present a certificate of eligibility to their lender. This establishes their record of military service.  These loans are insured by the federal government, which guarantees 25% of the total balance to the lender in case the veteran went into default.  Most lenders prefer offering VA loans because, not only do they help our veterans, but they historically have the lowest default rate out of any type of mortgage loan.  This may be attributed to the discipline of our veterans and the moral obligation they feel to pay their mortgage.

VA loans have numerous benefits for our veterans that are not typically found with other type of loans.  They include, but are not limited to, the following:

  • 100% financing
  • No Mortgage Insurance
  • Lower Fixed Rates
  • Lenient credit guidelines
  • Seller contributions allowed

Just to give you a comparison, if someone took out a $300,000 conventional loan and put down the minimum down payment of 5%, the rate would be about 4.25% and the monthly payment, including mortgage insurance, would roughly be $1700.  On a VA loan of $300,000 and 0% down, the rate would be about 3.875% and the monthly payment would roughly be $1410.  This is a savings of $290 a month or $3480 per year!

I know many people think that lending guidelines have tightened up, which is true to some degree, but VA loans have been and continue to be a great and easy option for our veterans to purchase or refinance their home.  As we complete the halfway point of 2014, I have been fortunate to close more VA loans in this 6-month period than any other during my 16-year career.  It is always an honor for me to assist any homeowner when they are purchasing a home but there is a special place in my heart when I can assist a veteran and their family in purchasing or refinancing their home.   It is the least I can do for those who do so much for us.

If you have any questions about this topic please do not hesitate to contact me. To learn more about our company and mortgage products, please feel free to call Dan Longman, President of Priority Lending Corp, at 954-438-3776 ext.11 or email me at prioritydan@bellsouth.net. Visit us online at www.prioritylendingcorp.com 

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