The Servicemen’s Readjustment Act was passed in 1944 to provide veterans and their surviving spouses with various benefits. One of the benefits is the VA loan program offered through the Department of Veteran’s Affairs (VA). The VA insures home loans made by approved lenders which allows veterans to receive a number of benefits such as 100% financing, no private mortgage insurance, and limited closing costs. Bancstar Mortgage is a leading provider of Mortgage Loans in Bethesda, Silver spring, Arlington, Baltimore, and the whole state of Maryland! Contact Bancstar Mortgage todat at (240) 664-6243 for more information or how to get pre-qulified!
Veterans will find that VA loans are very advantageous when compared to alternative options on the market.
Bethesda VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- VA regulation limits closing costs
- Up to $424,100 loan amount (certain counties may be higher)
Bethesda VA Loan Limits
Unlike most government-backed mortgages, the VA does not require a specific minimum credit score to qualify for a VA loan. While there is no minimum requirement, most lenders will typically look for a credit score of at least 620. No minimum credit score requirement allows us to be flexible with each borrower based on their individual situation. For instance, we may be able to approve a borrower with a lower credit score if they are able to make a larger down payment. Regardless of your credit score or down payment availability, you should be prepared to provide information such as W-2 statements, recent paystubs, and documentation of checking accounts and savings accounts.
VA Loan Eligibility
VA loan eligibility depends on the service status of the applicant. Fortunately, most veterans, military, and spouses of deceased military members are eligible to apply. Veterans can apply at any time if minimum active duty service requirements are met. Active-duty members will need to complete 6 months of service before they will become eligible. National Guard and reservists must wait 6 years before reaching eligibility however, if they are called to active duty, they will become eligible after completing 181 days of service. All applicants must obtain their Certificate of Eligibility (COE) before applying for a VA loan. If you have questions on how to obtain this, Bancstar Mortgage LLC is happy to help.
Refinancing a VA Loan
The VA also offers different refinancing programs to veterans who currently have a VA loan. Homeowners in need of extra cash for expenses such as home improvements or high-interest debt consolidation can take advantage of VA cash-out refinance loans. Those looking to simply lower their monthly payment and improve their interest rate can utilize the VA’s Interest Rate Reduction Refinance Loan (IRRRL). The IRRRL is also referred to as the VA’s streamline refinance loan.
Bancstar Mortgage is a leading provider of Mortgage Loans in Bethesda, Silver spring, Arlington, Baltimore, and the whole state of Maryland! Contact Bancstar Mortgage todat at (240) 664-6243 for more information or how to get pre-qulified!