- VA Loan:
Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
While the VA sets minimum qualification standards for VA loans, lenders can vary widely in their approval guidelines and pricing for VA loan products. Lenders add their own additional guidelines (often called "overlays") that impose additional restrictions on borrowers. These additional restrictions can prevent borrowers from being approved with some lenders even though they would be considered well qualified by others. Trustpoint Mortgage Loan Officers work with multiple lenders and are experts on these additional guidelines. This allows us to not only shop the best price for our clients, but also to place them with the lender whose guidelines are not in conflict with any challenges they may have in qualifying. There are three main types of VA loans available to veterans today:
VA 100% Purchase Financing (No down payment required)
When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less. The VA loan guarantee allows Veterans to borrow the full purchase without incurring additional cost for private mortgage insurance the need for a second mortgage.
VA 100% Cash-Out VA Financing:
Many lenders cap cash out VA financing loan limits at 90% of the value of the home. Trustpoint Mortgage has options available to help veterans access 100% of the equity of their home when needed. This option can allow borrowers looking to consolidate more debts by leveraging more of their homes value. Veterans can also access this equity for other purposes such as financing home improvements. Like purchase financing, this options allows veterans to access all the equity in their home without incurring additional monthly PMI or MIP financing charges incurred on Conforming or FHA loan types.
VA IRRL (Interest Rate Reduction Loan)
This loan type is designed to allow veterans (and eligible veteran's spouses or widows, etc.) to refinance the existing loan balances quickly and easily with minimum qualifying standards. This loan type often does not require income verification, is available with no appraisal required, has a reduced VA funding fee, and is often available with no or minimal closing costs. As no appraisal or income verification is required, veterans often qualify even if the are upside down (owe more that the house would likely or appraise for) or have reduced income that would present challenges for traditional qualification. Credit guidelines are also extremely lenient with many lenders on this product. Trustpoint Mortgage Loan Officers will help you find a program you qualify for at the most competitive price available.
VA Funding Fee
A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA. This fee is determined by the veteran's service type, first or subsequent time guarantee use, loan type, and disability status.