Friday, October 14, 2016

VA Loan Basics, What You Need To Know


Here is a guide for VA loans to see if you qualify and what other aspects of a VA loan you need to be aware of.
With every article I ever write I go by the saying "It takes an idiot to make something simple, complicated. It takes a genius to make something complicated, simple." Listen here folks because I'm going to breakdown the VA Loan basics of what you need to know.
Essentially to be eligible you need to have had an what's called a "Certificate of Eligibility." To see if you're eligible you can click this "COE Eligibility" link. Just to super simplify what usually qualifies is a table below for everyone to see.
(this chart can be found at the US Department of Veteran Affairs website which is sited on this link. I do not own this image and am only using solely to show who's eligible for VA Loans.)
That chart isn't too hard to read is it? Oh and real quick, let's not forget we do need anhonorable discharge as well.
Okay so now that we got eligibility out of the way, let's talk about the cons of a VA Loan. I'm just going to get all this out there. Let's talk "funding fee's". First time use of a VA loan requires a funding fee of 2.15% financed into the loan. Here's a simple example that even a 5th grader can calculate, let's say you hypothetically you're getting a VA Loan for $100,000. Not counting any of the closing costs at this point just know you're going to get hit with a $2,150 funding fee. There's nothing we can do about this people, we don't have a magical wand to say "Hey! Veterans Association! That funding fee you're charging... yeah we're not going to pay that." Folks it's not going to happen. Take the hit move forward like the soldier you are. Hey plus that goes to the VA! and that's a good thing because we need to take care of our veterans you know what I mean? So I guess it's not too much of a bad thing. Listen the only way you're getting out of paying a funding fee, is if you're over 10% disabled through your time in the service (at that point we have a magical wand). Other then that toughen up soldier! It's only 2.15% for first time use and it's not like you pay it out of pocket it's financed into the loan.
I almost forgot to put this here, subsequent use of a VA Loan which means if you've already used your VA Loan benefit before, now the funding fee is 3.30%.
Sidebar conversation, I come from a family of veterans. I think you guys would actually appreciate this story. You see my nationality is Filipino, my grandfather was born in the Phillipines, He was a teenager in the World War II days, he wanted to join the army in the Phillipines but for some reason they didn't let him into the army. I don't know why? He never told me, but anyways, he wanted to fight in the war so he literally walked into a US Navy base in the Phillipines and said "sign me up." He did 30 years in service to America, my father was born half-way through that time and he joined the United States Air Force when he was old enough, all my father's brother are veterans and I'm the one who does their home loans. I know exactly what I'm talking about folks. Actually, I really wanted to be in the Marines, when I got out of high school but I had some health issues that hindered my ability to join. I was devastated I wanted to be a soldier, My mother and father met on military base as well so to let you guys know who you're dealing with, veteran roots run deep within my family which is exactly why I'm writing this article. For my favorite people. The veterans of the United States America! God Bless America!

Okay didn't mean to get too off topic but I wanted you guys to get an inside of why I'm writing this. So back to VA Loans my friends. Another thing you're going to find out is you need to get a special appraisal called the "VA Appraisal." That's going to run you about $500 - $600 right off the bat. Everyone pays for appraisals, everyone knows that, again toughen up soldier because we're almost through all the bad and let us get to the glorious good of the VA loans!
VA Loans are so cool because you get... yeah I said they are so cool because they really are cool, pardon my "unprofessional language," I'm not your run of the mill salesman, although I am probably of the elite class of top tier professional salesman out there, I'm also a normal human being who speaks like a normal human being, I'm speaking to my friends here! Cut me some slack guys! Let's get into the reasons why VA Loans are cool. To be my friend, add me on FacebookInstagram, or LinkedIn and get to know me! I'm completely transparent,
Let's say you have a home with a mortgage on it worth $150,000 and let's say it's worth $400,000. We can actually finance up to 100% Loan to Value! What the heck does that mean Jon? It mean's we only owe $150,000 on the property so that mean's you can cash out the entire value of your home! Let me tell you why that's awesome, because for aConventional Loan we can usually only go up to 80% Loan to Value, for an FHA Loan, we can go up to 85% LTV (LTV = Loan to Value, I'm just tired of typing it all out every time I have to use the term). That's big because it doesn't require that Private Mortgage Insurance if our LTV isn't at least at 80%.
Another thing is.. The rates are frickin' amazing for VA loans. The rates are beautiful, they are like the most beautiful mountain view, watching the sunset complete with a panorama view of an ocean. They are truly beautiful rates I tell ya!
Let's talk minimum FICO, it can be as low as about 580 as well! Which is perfect for veterans who don't have the best credit in the world. I can work with that. "Not all mortgage bankers are created equal." Remember that next time you're doing a VA Loan my friends.

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The biggest benefit of doing a VA Loan is the reason why most people go with VA Loans in the first place. So, I'm going to need you to e-mail me to find that information out my friend. Listen you need a VA Loan? I'm your guy, email me at Jarpon@breezefunding.com and I will break down step-by-step how to get you qualified for one. I'm easy on the ears so let's find out together how much we can save you in monthly payments, how much we can get cash out to get whatever you need. I'm here for you veterans! As your VA Loan specialist -Jon Arpon "Orange County's Premier Mortgage Banker."



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