VA Mortgages

VA Mortgages

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ABOUT

Principle Home Mortgage proudly offers current service members, veterans, and eligible surviving spouses in Williamsport, PA and the Lycoming County region this beneficial mortgage loan product, a VA home loan.  With a certificate of eligibility, those prospect homebuyers who qualify for a VA mortgage can expect good rates, no required down payment, and helpful seller assist (if negotiated in your sales contract) towards closing costs.  A VA home loan is available in forward purchases, refinances, and renovation products and is a great low cost mortgage loan option.

PRODUCT HIGHLIGHTS

• Seller Assist: Maximum of 4%
• Agency: The Department of Veterans Affairs
• Max Loan-to-Value: 100%
• MIP: No monthly insurance premiums required
• Max Income: No income limitations
• DTI Requirement: 41% but fluctuates by lending bank; may be much higher with an automated system approval.
• Credit Requirement: None requirement by VA; set by the lender so it varies
• Down Payment Requirement: As low as 0%
• Funding Fee:  Many current and former military will be have to pay a funding fee.  It is an upfront cost required by the VA but can be financed into the loan.  It’s a percent of the loan amount and determined by factors such as military category, down payment, first-time or repeat loan user.  A VA funding fee is not required for:
  • Veterans receiving VA compensation for a service-related disability
  • Veterans who would be receiving compensation for a service-related disability if they did not already receive retirement or active-duty pay
  • Surviving spouses of veterans who died as a result of service or from a service-related disability

PRODUCT BENEFITS

• The VA guarantees your home loan: A VA home loan is guaranteed by the VA, unlike other mortgage products.  This guarantee is provided to the private lender in the case of foreclosure, resulting in less risk to the lender by allowing them to recover most or all of their investment.  For the borrower, this can result in a better chance of obtaining the loan under better terms than other loan programs not backed by the VA.
• No required down payment: A huge benefit of a VA home loan is it’s one of the few mortgage products that do not require a down payment.  There may be circumstances where the subject property’s sales price is higher than the appraised value, and the difference will need to be paid by the borrower.  There is a difference between down payment and closing costs.
• Typically, terms and interest rates are better: As another added benefit, when comparing VA home loans, the borrower can typically expect to find that they have lower interest rates and better terms.
• No MIP or PMI: VA home loans do not require any monthly mortgage insurance, resulting in savings to the borrower each month.  This is a significant different from FHA as it requires the borrower to pay MIP (monthly insurance premium) for the life of the loan in most cases.  Even conventional loans require PMI (private mortgage insurance) if less than 20% is put down, and it continues until the loan-to-value reaches 78%, or the borrower seeks out to cancel it at 80% loan-to-value. 

HOW DO I APPLY?

The only difference in the beginning process of obtaining a VA loan is needing a Certificate of Eligibility from the VA.  Generally, you will need 2 years tax returns and W2s, 2 months recent bank statements, 2 forms of ID, and 30 days of paystubs in addition to the COE from the VA.  Self-employed borrowers can expect these requirements to vary slightly.  To determine your eligibility for a VA home loan in Williamsport, PA or the Lycoming County region, reach out to Principle Home Mortgage at (814) 308-0959 to discuss your home financing needs.

RESOURCES

Obtain your Certificate of Eligibility

Apply online with Principle Home Mortgage

Visit the VA homepage for more information on VA Home Loans

Learn more about the VA Home Loan Funding Fee