VA Loans…Still the best mortgage financing available Are you eligible?

Homes-102013-3Tony Dias
Branch Manager
Veterans United Home Loans of Hawaii
NMLS #222836

First, if you buy property with VA financing, no down payment is required up to the loan limit, which is $750,000 for Honolulu County, $625,500 for the Neighbor Islands.

The FHA program requires borrowers to put down at least 3.5 percent of the sales price of the home. So for a home costing $600,000, FHA borrowers would be fronting a total of $21,000.

With VA loans there is a onetime Funding Fee of 2.15 percent, which is waived for qualified disabled veterans and surviving spouses. So, based on a loan of $600,000, the fee would be $12,900. However, this fee can be financed into the loan or reduced if the buyer decides to put some cash down.

With the FHA program, in addition to the 3.5 percent down payment, borrowers pay an up-front mortgage insurance premium (MIP), which is equal in most cases to 1.75 percent of the loan amount. For a $600,000 loan, the FHA borrowers would pay an additional $10,132.50, which can be financed in some cases.

However, unlike the VA onetime Funding Fee, the FHA loan mortgage insurance premium will also become a monthly

expense rolled into the mortgage payment – on a loan of $600,000 you could expect to be paying an additional $603.13 a month. Because the loan amount goes down as the mortgage is paid off, the exact cost of the FHA’s MIP declines a little with each monthly payment.

Both the VA and the FHA programs represent excellent forms of financing, but VA mortgages are simply a better financial deal for most qualified borrowers.

Are you eligible for a VA loan?

To be eligible for VA home mortgage financing, prospective borrowers must fall into one of the following categories:

* Served 181 days on active duty during peacetime or 90 days during wartime

* Served six years in the National Guard or Reserves

* Spouse of a fallen service member who died due to a service related injury.

No matter which category you fall into, the next step is filling out a Certificate of Eligibility, or COE. This official VA document proves you are able to participate in the program and have met the service requirements. Applicants can obtain these certificates through the VA or an approved VA lender.

Simply call us at Veterans United Home Loans and we will send one to you…or pick one up at our monthly seminars where all you questions about VA loans will be answered.

“You’ve served our country. Now let us serve you.”

-Aloha, Tony Dias

Upcoming VA Loan Seminars

Veterans United seminars include Powerpoint presentations & free workbooks. Question and answer periods follow the presentations. For more information and directions, call 677-LOAN (5626).

Tuesday, October 29 6 – 8 pm

Veterans United Home Loans of Hawaii Educational Center 94-539 Puahi St., Waipio, HI 96797

Tuesday, November 12 6 – 8 pm

Veterans United Home Loans of Hawaii Educational Center 94-539 Puahi St., Waipio, HI 96797

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