It’s common to have questions regarding the VA loan program and the VA benefits you are entitled to. Our VA home loan specialists are compiling an ongoing list of helpful answers to a wide variety of questions that you may have concerning your pending home purchase and your benefits as a Veteran.
Frequently Asked Questions
VA loans have many benefits not offered by conventional loans, especially for first-time homebuyers with little or no money for a down payment. Plus, VA home loans do not have private mortgage insurance requirements. Additionally, VA loans usually have lower rates than conventional loans and may have different or lower closing costs. This is because there are certain fees that borrowers cannot be charged. VA home loans may also give you the ability to refinance to a lower rate without having to re-qualify for the loan, a process known as a VA Streamline Refinance, or IRRRL. Getting started on your VA loan is easy; simply contact a VA loan specialist now about your VA Benefits Minnesota!
No, with a VA purchase you cannot get cash back at closing other than your earnest money or other money you put down beforehand. In some scenarios, if energy efficiency improvements are being made to the home, the VA does allow the loan amount to go above the purchase price of the home.
Most of the time, the realtor will want your pre-approval letter to show that you have been approved for a loan and for how much. This is a better bargaining chip with the seller because the seller will know you are approved for the loan and won’t have to wait while you find financing.
This means the VA guarantees the loan to the lender in case you default on the loan. It does not mean that you are guaranteed a loan; you still have to qualify for it based on credit and income.
No, at this time the VA does not guarantee HELOCs. VA allows qualified borrowers to refinance their existing property up to 90% of its appraisal value.
Equity is the amount of value a homeowner has in their property. You can calculate your equity by subtracting any liens or debts against your home from what your home is worth.
A child care letter is a letter required on a VA loan if the borrower has children under the age of 13. A VA loan requires that childcare expenses are counted as liabilities for qualification purposes.
No, the VA guarantees the lender on the loan. There is no third-party mortgage insurance required with a VA home loan.
No, you can get pre-qualified before you even start looking for a property. This way you know what you can afford and what your payments will look like on the property that you end up choosing.
Many factors go into the timing of the process. To be safe, you should allow at least 30 days for the entire process to take place, however, it is possible to close sooner. With the help of our VA home loan specialists, the process is quick and easy!