VA Loans
Veterans Administration or VA Loans Explained
VA loans are loans guaranteed by the Veterans Administration. They are great loans available only to veterans and their spouses. The advantage to having a VA loan is they have a $0 down payment option with very competitive interest rates. If you are a Veteran check out these features:
Features:
• Client must be veteran, active military or reservist as evidenced by their DD-214
• Zero down-The only zero down loan program currently available
• Competitive fixed rates
• Seller can pay up to 4% of closing costs
• Clients able to come in with very little funds to close transaction
Things to keep in mind when using VA financing:
• Property condition critical. All health or safety issues must be corrected before closing and all must be free from any termites
• There are non-allowable fees the Veteran cannot pay (usually about 2-2.5% of price). This can be covered with a credit from the seller or the lender.
Take a little longer to close (plan for a minimum 45 day escrow)
• Lower debt ratio requirements than many conventional or FHA loan programs.VA guidelines have a limit on the overall debt ratio to 41%.
