Veterans have the option of obtaining VA loans provided by private mortgage companies but guaranteed by the federal government. The guarantee protects lenders from loss up to a certain value should a borrower forecloses on a property. With this guarantee, mortgage companies are able to extend veterans options not readily found in other programs. The following is an introduction to the advantages of VA loans in Palm Beach FL.
Advantages Of VA Loans In Palm Beach FL
The most well-known advantages of VA loans are the options for no down payment and no mortgage insurance. Veterans can finance the full price of a property being purchased, that is assuming the appraisal is sufficient and the particular lender does not require otherwise. VA financing also allow veterans to purchase a property by removing the added cost of mortgage insurance, which is usually included in loans with less than twenty percent down. Other notable benefits are…
- Similar closing costs to other loans.
- VA loans are assumable.
- No pre-payment penalty.
- Ability to finance or reduce the VA funding fee for the home loan.
Qualifying for VA Loans
To obtain a VA loan, veterans must fit several criteria. The first set involves their actual service – when time was served, level of service, and amount of time served. The second set includes the typical credit score and financial analysis by mortgage companies. Veterans can contact any bank offering VA loans to confirm eligibility and request a pre-approval.
With a pre-approval ready, buyers may then start viewing properties within their price range. Once a listing is selected, an offer should be submitted subject to approval for VA financing. With a purchase contract, veterans may then submit a formal application and lock in an interest rate. Once the application is approved, the next step is the closing. After closing, information is sent to the VA. Veterans can only maintain one active VA loan at any given time.
This blog is simply a brief overview of the advantages of VA loans in Palm Beach FL. For a list of mortgage companies offering VA loans, contact Sonny Solomon at The Keyes Company at 561-247-1047 or sonny@sonnysolomon.com.
