What are VA Loans When to use your VA eligibility and when NOT to use it.



VA does NOT provide loans. They support or guarantee only a portion of these loans so that mortgage bankers and banks can provide those eligible for financing with a maximum of 100% financing for purchases. Veterans and those serving our country receive a Certificate of Compliance, which allows them to apply for a VA loan without paying any money. What’s important to know is that MOST MORTGAGES create VA loans, not just the ones you see on TV! These TV lenders spend a lot of money on advertising just to encourage veterans to apply with them, as they often pose as being specifically in business to help our VETS. HERE A FACT: EVERY lender offers EXACTLY the same VA loan programs, and many, including my company, offer the same programs at lower rates than TV AD lenders! Remember, these companies are spending fortunes on advertising … and making a lot of money from their loans to help subsidize those ads! Do they all really help our veterinarians, as they claim?
PROS and CONS OF VA LOAN: There are more PROS for those veterinarians who are interested in exercising their rights. The beauty of a VA loan is that a veteran can apply for 100% funding and get a loan without mortgage insurance. VA loan rates are also generally lower than regular loan rates! In Los Angeles County, a veteran can purchase up to $ 1.5 million with a zero down payment! As with the VA loan, there are no set debt-to-income ratios that a veteran must be capped … in order to qualify. I have run a lot of loans through an online program in which all lenders use a debt to income ratio of up to 68% going through the system, which means that a veteran can get a higher loan than with a regular loan where the debt ratio must be below 50. %.
On the other hand, the only major drawback of a VA loan is what is called the VA FUNDING PAYMENT. This commission is a one-time fee and can be loaned or paid in cash. Generally speaking, the ONLY way for veterans to be exempted from this fee is to get them a VA disability benefit. Otherwise, first-time buyer VA, FINANCING VA is 2.3% of the base loan amount and is added to this loan amount). For example, with a purchase price and a loan base of $ 500,000, the VA funding fee added to this loan base amount would be $ 11,500. For non-tax exempt second use veterans, the FINANCING fee is 3.6% or $ 18,000. If a tax-exempt veteran wants to refinance to lower their rate, there is a Reduced Interest Rate Loan Refinancing (IRRRL) program that caps funding fees at ½% and makes it very easy to streamline the process without retraining.
Finally, I was approached by clients because another lender offered to use a VA loan when it was inappropriate. In this case, the client was NOT exempted from the financing fee and wanted to refinance the house for which he had a regular loan. With a large stake in the property, the veterinarian was asked to exercise his or her eligibility for the VA program. Although the rate was slightly lower than the regular loan, the VA funding fee was supposed to be $ 8,000! Why would a loan officer suggest this way when a veterinarian can easily qualify for another conventional loan without mortgage insurance and funding fees. We ended up giving him the right remedy – a regular loan! You can still take care of your veterinarians without giving them a VA LOAN unless justified!
For answers to any questions regarding VA loans or loans of any type, please contact Kurt Kravitz. He has been taking care of our VETERANS and all other clients for the past 35 years! You can contact him by phone 661-705-2500 or by phone ckravitz@bayeq.com


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