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Davie Home Finance, 115 Donna Rd NE, Palm Bay, FL 32907
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VA Loans
The VA home loan benefit is called an entitlement.
VA guaranteed loans are made by lenders and brokers to veterans for the
purchase of a personal home. The guaranty means the lender is protected against
loss if you fail to repay the loan. The guaranty replaces the protection the lender
normally receives by requiring a down payment allowing you to obtain favorable
terms.
With a VA loan you finance 100% of the purchase price as well as the funding fee.
A VA loan refinance, is called an IRRRL. An "Interest Rate Reduction Refinance
Loan" is also referred to as a "Streamline" or "VA to VA". Unless you are
refinancing from an adjustable rate, you must be moving to a lower rate, from your
existing mortgage rate.
No appraisal or underwriting is required for the IRRRL by the VA, but the lender
may want an appraisal and credit report. An IRRRL can be done with no out of
pocket expense and does not require the VA certificate of eligibility.
VA loans closed after 1988 are assumable, with approval of the VA or the Lender.
Loans closed before 1988 are assumable by anyone, without any approval. The
owner should get a release of liability before allowing the mortgage to be
assumed.
Although rare, the VA will do a "refund" of the loan, from the lender. If the veteran is
having difficulty making payments, the VA will "refund", which means they will take
over the loan. This is only done when the veteran's reasons were due to
circumstances beyond his or her control, and there is a good chance that they will
recover and be able to make timely payments again.
A note to the borrower:
There is usually quite a bit more paper work involved in processing a VA loan.
There are extra disclosures that need to be signed along with stricter underwriting
guidelines. They may require letters of explanations for various items on credit
reports etc...
The VA home loan benefit is called an entitlement.
VA guaranteed loans are made by lenders and brokers to veterans for the
purchase of a personal home. The guaranty means the lender is protected against
loss if you fail to repay the loan. The guaranty replaces the protection the lender
normally receives by requiring a down payment allowing you to obtain favorable
terms.
With a VA loan you finance 100% of the purchase price as well as the funding fee.
A VA loan refinance, is called an IRRRL. An "Interest Rate Reduction Refinance
Loan" is also referred to as a "Streamline" or "VA to VA". Unless you are
refinancing from an adjustable rate, you must be moving to a lower rate, from your
existing mortgage rate.
No appraisal or underwriting is required for the IRRRL by the VA, but the lender
may want an appraisal and credit report. An IRRRL can be done with no out of
pocket expense and does not require the VA certificate of eligibility.
VA loans closed after 1988 are assumable, with approval of the VA or the Lender.
Loans closed before 1988 are assumable by anyone, without any approval. The
owner should get a release of liability before allowing the mortgage to be
assumed.
Although rare, the VA will do a "refund" of the loan, from the lender. If the veteran is
having difficulty making payments, the VA will "refund", which means they will take
over the loan. This is only done when the veteran's reasons were due to
circumstances beyond his or her control, and there is a good chance that they will
recover and be able to make timely payments again.
A note to the borrower:
There is usually quite a bit more paper work involved in processing a VA loan.
There are extra disclosures that need to be signed along with stricter underwriting
guidelines. They may require letters of explanations for various items on credit
reports etc...
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