Submitted by admin on Fri, 11/19/2010 - 02:08
The U.S. Department of Veteran Affairs has come up with special mortgage programs and refinance deals on Veterans Day. Any veteran can take help from VA mortgage programs more than once in his or her lifetime. Moreover, VA loans are charging low rates at present. It is available at an interest rate of around 4.25% - 4.50%. So, it's even worth a refinance as well.
The government also prefers giving out VA loans because it has the second-lowest default rate, second only to USDA farm loans.
Positives of VA mortgage:
- Automatic approval: Qualified veterans who wish to refinance a previous VA mortgage will receive automatic approval from the lender if they had made all the payments till date on time.
- Credit score: In order to get a new VA loan or refinance the existing mortgage, the borrowers should have a credit score of around 620 to 640 which is quite low compared to conventional loans.
- Free appraisal: If the borrower is refinancing a VA mortgage, then lenders offer a free automatic appraisal requiring a value of 95% to 105% of their mortgage balance.
- Upside down loan: Borrowers will also find that most of the VA lenders will allow them to refinance even if they have slightly underwater mortgages.
- Funding fee: The Department of Veteran Affairs charges a 0.5% funding fee. If the borrowers are unable to pay that fee, then the lenders even roll in that fee into the new loan amount.
The veterans of America fully deserve this special benefit. So, if you know someone who has served in the military, then you can pass on this information and help that person to take advantage of these benefits.