a sneak peak into 8 important elements

A Sneak Peak into 8 Important Elements of a VA Loan

Introduction: VA Loans

• Easiest way to secure a home for veterans

• Procure mortgage loans with zero down payment

• Facility to finance the funding fee

• Helped 21 million veterans purchase home since 1944

• Evaluating monthly installments is easy with VA loan calculator

2

8 Important Elements of a VA Loan

• Reusability

• Types of Home

• Occupancy

• Lender

• Bankruptcy and Foreclosure

• Mortgage Insurance

• Limit on Co-borrowers

• Prepayment Penalty

3

Reusability

• Offers a sum of $104,250 of entitlement in US

• Divided into primary and secondary entitlement

• You continue to pay loan, and can use this entitled amount again

• If you default on first loan, you can apply for a second VA loan

Types of HomePrimary idea to purchase

•Condo

•Single-family home

•Multi-unit property

•Modular housing

But also

•Downtown food shop

•Working farm

•Fixer-upper

Occupancy

VA backed homeFor :

•personal use : Primary residence (needs veterans to certify)

Not for :

•purchasing investment properties

•vacation homes

Veterans to occupy home within 60 days of purchase

Lender• The U.S. Department of VA covers a

quarter of the loan amount

• Qualified & approved VA loan lenders take care of the mortgage process

• Lenders require 620 credit score (FICO Model)

• Lenient figure WRT Conventional loans

Bankruptcy and Foreclosure

• Bankrupt account on credit report doesn’t matter

• VA loan benefits still available if you experience foreclosure

Mortgage Insurance

Mortgage insurance is monthly fee when down payment is less than 20%

•No down payment required

•No mortgage insurance required

Prepayment Penalty

Flexibility in increasing the size of monthly installments

•No Fixed Monthly installment

•Can pay lumpsum and save on interest

Conclusion

While

•Government backs VA loans

•Allows securing a second loan even if you defaulted on the first

Take steps that help you settle your payments on time

•Understand the terms and conditions

•Learn about your funding fee

•Use VA loan calculator

•Call your lender and ask for more information

11

Thank you