VA Home Loan – The Hill Team
The Hill Team at Keller Williams Realty Elite Partners realizes the benefits in using the VA Home Loan to your advantage because we are a Veteran Owned Company.
Stephen and Michelle Hill have used the VA Home Loan for both of their homes and have helped others in smoothing out their process.
VA Home Loan Explained
The VA Home Loan is all about helping active duty, guard/reserve (with specific criteria), veterans, and surviving spouses that are eligible, become homeowners.
There is a Direct VA Home Loan and three VA Backed Home Loans for Purchase Loans.
The Direct VA Home Loan means the VA will be your mortgage lender and will assist in the process all the way through. The Native American Direct Loan Program (NADL) is the ONLY Direct VA Home Loan and it often offers better rates than the private lenders or banks will, if you or your spouse are Native American. Learn more about the NADL, here.
With a VA backed Home Loan, many private lenders offer better rates knowing there is less risk involved with the VA covering a portion of the loan. This is the reason why MOST VA backed Home Loans have NO Down payment. The lenders must follow the VA standards, but can also add their own if they choose to do so. This makes the home search undeniably more narrow than a typical conventional loan. They do this to mitigate risk, but do not view this negatively. The VA is not only covering their end by having higher standards, but also attempting to ensure your future issues with the home you’re buying is minimal. Benefits: No downpayment, no PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premiums), Improved terms / interest rates, and ability to borrow up to the conforming loan limit of Fannie Mae/Freddie Mac, possible lowered closing cost, and there is no pre-payment penalty.
If you already have a VA backed Home Loan, then you may be eligible for an Interest Rate Reduction Refinance Loan (IRRRL). This loan is for lowering your monthly mortgage payment by lowering your interest rate or providing stability by moving over from an adjustable to fixed interest rate.
Do you have a Non-VA Backed Home Loan and want to refinance into a VA Backed Home Loan? Do you already have a VA Backed Home Loan but want to take out home equity to pay for other things such as school or improving your home? The Cash Out Refinance Loan might be your solution. Learn more, here.