If you are a former or existing member of the armed forces consider applying for a VA home loan through Summit Funding. The current economic conditions has created an extraordinary opportunity to purchase a home. Current mortgage rates are at a 21 year low, which allows homeowners to qualify for larger loans at a budget friendly rate. VA loans are a viable option for millions of veterans seeking a fixed low rate loan with little or no money down.
Applying for a VA loan can result in a lower monthly payment and thousands in savings over the term of the loan. One of the main benefits of applying for a VA loan is a zero down mortgage. In addition, most mortgage companies also do not require Mortgage Insurance coverage even though there is less than 20% down payment.
Most importantly, VA home loan interest rates are much lower than conventional mortgages. Applicants will find that a VA loan can be as much as 0.5 percent lower than conventional mortgages. The current VA home rate is 2.7% with a 3.3% APR. With such low rates home buyers have more purchasing power than ever before.
The two most popular types of VA loans are Purchase loans and Interest Rate Reduction loans. Purchase Loans allow veterans to purchase a home at a competitive rate without a down payment or mortgage insurance. Existing home owners are also able to utilize VA loans to refinance their homes with cash out. Refinancing loans allow veterans to utilize the cash to settle debt or make home improvements. With the low interest rates and no mortgage insurance, veterans are able to stream line the loan application and qualify for larger loans with a lower monthly payment.
Veterans are able to receive such favorable terms due to several factors. VA loans are considered by lenders to be more secure by lenders. The Veterans Benefits Administration guarantees up to 25% of the loan. VA loans also have a lower rate of default compared to conventional loans. The lack of requirements to qualify for a loan also results in a faster loan application process. There are currently more than 22 million veterans and active military members that qualify for these loans. Surviving military spouses who have not remarried also qualify for a VA loan.
Summit Funding, Inc. -Home Loan Experts
300 Salem St, Chico, CA 95928