Veterans have the option of obtaining VA loans offered by private lenders but guaranteed by the VA. The guarantee protects lenders from loss up to a certain dollar amount should a borrower go into foreclosure. With this guarantee, lenders are able to provide veterans features not readily available in other programs. The following is an overview of the benefits of VA loans in Vineland New Jersey.
Benefits Of VA Loans In Vineland New Jersey
The best advantages of VA loans are the options for no down payment and no mortgage insurance. Buyers can borrow up to the full price of a home being purchased, that is if the appraisal supports the figure and the individual lender does not require otherwise. VA mortgages also allow veterans to buy a home by eliminating the additional monthly expense of mortgage insurance, which is usually required in home loans with low down payments. Other notable advantages are…
- Comparable closing costs to other loan programs.
- VA mortgages are transferable.
- No pre-payment penalty.
- Ability to roll in or lower the VA funding fee for the mortgage.
Qualifying for VA Loans
To obtain a VA mortgage, buyers must fit several criteria. The first set pertains to their actual service – when time was served, type of service, and length of time served. The second set involves the typical credit score and financial considerations by mortgage companies. Veterans may contact any bank offering VA loans to confirm eligibility and request a pre-approval.
With a pre-approval ready, veterans should then begin visiting properties within their price range. Once a property is identified, an offer may be made subject to approval for VA financing. With a contract to purchase, buyers can then formally apply for the loan and lock in an interest rate. Once the application is approved, a closing can take place. After closing, information is sent to the VA. Veterans are only allowed one active VA loan at any given time.
This article is only an introduction to the benefits of VA loans in Vineland New Jersey. For a list of companies providing VA loans, contact Diana Escobar-Wachter at Access Abstract Corporation at 610-461-2910 or wachterd@accessabstract.com.
