In this blog, we will cover and discuss buying a home with a VA loan with no money down. If you are a veteran and bravely served our country, this article is for you. The team at Gustan Cho Associates are experts in VA mortgage financing. If you have been following our blogs, you are up to date on some of the recent changes surrounding VA mortgage lending. In this blog, we will detail a few success stories. We will cover and detail several examples of how a veteran can buy a home with a little money out of pocket. We will also detail the steps of how to apply for a VA mortgage and what to expect during the VA mortgage process.
Successful Stories Of Buying A Home With A VA Loan With No Money Down
Recent success stories for veterans buying a home with very little money down. Many veterans are not aware, but due to the Blue Water Navy Vietnam Veterans Act of 2019, there is no longer a limit on how much money you can borrow with a VA mortgage loan. That being said, recently we’ve had a client move from South Carolina to North Carolina and utilize a VA mortgage to buy their next home. This home happened to cost $1.175 million.
Buying A Home With A VA Loan With No Money Down With Bad Credit
The borrower was able to qualify based on debt to income, residual income, and credit requirements. Passing these requirements allowed for 100% VA financing and did not need a down payment to purchase a home over $1 million. Between the property taxes, title costs, and origination fees, the closing cost can add up quickly. In this particular example, the veteran asked for seller credit to cover all closing costs.
There was quite a bit of equity in the property over the $1.175 million purchase price. The veteran homebuyer was able to come to the closing table with only a few hundred dollars out of pocket. That’s right, a veteran purchased a house for over $1 million with just a couple hundred dollars out of pocket. This example can be replicated for homes that cost less.
Buying A Home With A VA Loans With No Money Down And No Closing Costs
It is important to understand that if a home only costs $100,000, there may not be enough room to cover all closing costs. With a VA mortgage, the seller can only contribute up to 4% of the purchase price for closing cost credit. Depending on your credit score and other requirements, 4% may not be enough to cover all items needed. It really depends on where you’re looking to purchase in the country. Property taxes, title fees, and transfer taxes vary dramatically across the nation.
We encourage you to reach out to Gustan Cho Associates at 630-659-7644 to discuss your out-of-pocket requirements in your specific area. A licensed loan officer will send you a detailed breakdown of what to expect for fees in your area and guide you through the next steps.
VA Cash-Out Refinance Loan Programs
Many veterans are taking advantage of this low-rate mortgage environment. If you already own a home, a VA refinance may be in your best interest. Whether you complete a VA IRRRL (interest rate reduction loan) or a VA cash-out refinance, this is a great opportunity to lower your overall mortgage interest obligation. Utilizing a VA IRRRL should not have any cost out-of-pocket. No appraisal is required for these transactions. This is a great way to take advantage of today’s low-rate environment.
VA Cash-Out Refinance Guidelines
If you have equity in your home, VA allows you to cash out up to 100% of the value of your property. Many veterans are using this opportunity to pay off other consumer debts, such as high-interest credit cards or auto loans. The only out-of-pocket expense for a VA cash-out refinance is the cost of the appraisal.
100% LTV on Cash-Out Refinance VA Loans
It may be in your best interest to put that cost on a credit card we are paying off with the proceeds from the mortgage loan. Essentially creating a no out-of-pocket expense transaction. For more information on VA refinance options, please call us today. Mike Gracz is an expert on refinance transactions. He can be reached directly at 630-659-7644 or email@example.com. Mike will go over customized refinance options that can put you in a much better financial position.
Qualifying For Buying a Home With a VA Loan With No Money Down With Lender Who Has No Overlays
Applying for a VA mortgage loan with Gustan Cho Associates is becoming easier and easier. As technology advances throughout the mortgage industry, the application process has been simplified. You will first call Mike Gracz at 630-659-7644 to go over the specifics of your VA mortgage loan. During this initial conversation, you will discuss all credit, income, and asset qualifications. It is important to be upfront and honest with any credit issues you may be facing.
Best Lenders With NO Overlays For Buying a Home With a VA Loan With No Money Down
Gustan Cho Associates are able to lend on mortgage VA without any additional LENDER OVERLAYS. This helps us serve more veterans than most mortgage lenders. During the Covid-19 coronavirus outbreak, many lenders have added extra hurdles when qualifying for a VA mortgage loan. After this initial phone call, Mike will pair you with a licensed loan officer in your State. You will then complete an online application and send in the required documentation. The documentation will change based on your sources of income.
Documents Required For Buying a Home With a VA Loan With No Money Down
You can expect to upload your CERTIFICATE OF ELIGIBILITY, 60 days’ worth of bank statements, a driver’s license or government-issued photo ID, income documents such as pay stubs, and W-2s, and eventually a homeowners insurance quote. These items will allow your loan officer to pre-approve your file up to a certain payment. Now it is time to go house hunting and find a property that fits your payment threshold.
Once you are under contract, you will simply send that contract to your loan officer and our team will send out the required disclosure documentation to start the VA loan process. Congratulations, this process is supposed to be fun and not stressful. We are here to help you through every step of the process. Our team will guide you every step of the way!
Starting The VA Loan Pre-Approval Process
After reading this blog, we hope you understand the opportunity veterans have with a VA mortgage loan. This is a great chance to save you and your family thousands of dollars of interest over the life of your loan. This is also a great time to utilize the equity in your home to put yourself in a better financial situation.
Whether you are looking to purchase a home with little out-of-pocket money, or complete a refinance transaction saving you thousands, the Gustan Cho Associates are the experts in VA mortgage lending. We are available seven days a week to help you and your family save as much money as possible. Even if you have been turned down for VA lending in the past, we encourage you to reach out to us today. We look forward to hearing from you and answering any questions you may have!
This guide on Buying A Home With A VA Loan With No Money Down was updated on September 20th, 2022
September 20, 2022 - 5 min read