Dan Chapman

Branch Manager, Mortgage Loan Originator

NMLS #1100657
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Nov 20 2015
Dan
28 posts

What are the Benefits of a VA loan?

What are the Benefits of a VA Loan?

The VA loan is one of the best – if not the best loan product available.  Here are a few reasons why:

  • ZERO down payment is required up to the county limit ($562,350 in San Diego).
  • Credit guidelines are much more flexible – no credit score requirement by VA, but many lenders require FICO scores of a min between 580-620.
  • There is NEVER any mortgage insurance on a VA loan.
  • Assumable – a VA loan can be transferred to a new eligible borrower.
  • A non military spouse’s income can be used on a VA Loan.
  • VA Loans allow for a higher debt to income ratio (DTI), allowing a borrower to qualify for a higher loan amount.
  • VA Loans CAN be used for jumbo purchases.  A borrower has to put down 25% over the local ZERO down limit.
  • The VA Loan can be used more than once.
  • If you are disabled veteran and receive compensation, there is no funding fee – ever on your VA Loan
  • For active duty military, Basic Allowance for Housing (BAH) is not taxable
  • Mortgage interest, property taxes, and property insurance are all tax deductible  (YES, THIS IS ESSENTIALLY A DOUBLE DEDUCTION WHEN PAID WITH TAX FREE BAH)
  • While the VA does not offer loans, it insures them, and most major banks are VA approved VA mortgage lenders
  • VA mortgages offer the flexibility of 30 year fixed, 15 year fixed, adjustable rate mortgages as well a variety of terms.
  • A VA loan can be used for almost any detached home, most condos and town homes, and even some manufactured homes (must own the land).

 

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