Veterans may obtain VA financing provided by private lenders but guaranteed by the VA. The guarantee insures mortgage companies from loss up to a specific value should a borrower defaults on a loan. Because of this guarantee, lenders are able to extend veterans options not easily found in other financing. Below is an introduction to the advantages of VA financing in PA.
Advantages Of VA Financing In PA
The best advantages of VA financing are the options for no money down and no mortgage insurance. Buyers can borrow up to the entire price of a property being purchased, assuming the appraisal is sufficient and the individual lender does not have a special mandate for down payment. VA loans also enable veterans to purchase a home by reducing the additional monthly expense of mortgage insurance, which is traditionally included in loans with low down payments. Other important benefits are…
- Similar closing costs to other types of loans.
- VA mortgages are assumable.
- No penalty for paying the mortgage off early.
- Ability to roll in or lower the VA funding fee for the mortgage.
Obtaining VA Financing
To obtain a VA loan, buyers must fit a few requirements. The first set pertains to their service – war served, level of service, and amount of time served. The second set involves the typical credit score and financial requirements by lenders. Veterans may contact any bank offering VA mortgages to determine eligibility and obtain a pre-approval.
With a pre-approval in hand, veterans can then begin visiting properties within their price range. Once a listing is selected, an offer will be made subject to approval for VA financing. With a contract to purchase, veterans can then formally apply for the loan and lock in an interest rate. Once the application is approved, the next step is the closing. After closing, information is sent to the VA. Veterans are only allowed one current VA mortgage at a time.
This article is merely an introduction to the advantages of VA financing in PA. To be referred to a local bank offering VA financing, contact Pedro Teixeira at FIT Credit at 215-613-8130 or pteixeira.fit@gmail.com.