Credit Score
One of the best benefits of the VA loan program is its relaxed credit requirements. With a VA home loan, there is an opportunity for all who qualify to own a home, even those with lower scores cam enjoy the benefits of home ownership.
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No Lender Fees or Down Payment Required
VA loans are backed by the federal government, making it easier for lenders to keep interest rates competitively low for you. In fact, VA loans have the lowest average interest rates of all loan types.
Fees are lower too, because the Veterans Administration limits the fees charged on VA loans. With Resource Financial, you have the added savngs of NO lender fees.
So how much will you pay in interest rates and fees? Your Resource Financial mortgage banker can determine your rate on a VA home loan, based on your unique financial situation.
Debt-to-Income Ratio
Debt-to-income ratio (DTI) looks at the relationship between your income and your new mortgage payment, estimating your ability to repay debt. Acceptable DTIs vary but a DTI of 41 percent or lower is preferred.
Loan Duration (15 or 30 Year)
All VA loans have lower interest rates than conventional loans. The duration of your loan will affect your rate, with 15-year loans typically have lower interest rates than 30-year loans, so you’ll pay less interest right from the beginning.
Current Market Conditions
All mortgage rates fluctuate depending on changes in key economic factors like inflation, government policy and developments in the real estate industry that indicate the strength on the demand for mortgages. But with a VA loan you will always pay less than you would with other mortgage products.
What you need to know
When you are buying a home, it’s important to know all the costs involved. Talk to your Resource Financial mortgage banker about not only your interest rate, but also any associated fees you may be charged.
When you are buying a home, it’s important to know all the costs involved. Talk to your Resource Financial mortgage banker about not only your interest rate, but also any associated fees you may be charged.
The VA home loan program offers similar costs to other loan programs, with some exceptions. One fee you won’t pay with a VA loan is private mortgage insurance (PMI), which can add as much as $100 a month to every monthly payment.
Another fee specific to the VA loan is the VA Funding Fee. This one-time fee is paid to the VA to cover the costs of administering the VA loan benefit program. Some disabled veterans and eligible surviving spouses may be exempt from paying this fee.
Other fees allowed by the VA include:
- Origination Fee of 1% – Also called Lender Fees. Resource Financial does not charge this fee on VA loans.
- VA Funding Fee – Unless you are exempt.
- Reasonable interest rate discount points
- VA Appraisal Fee
- Credit Report Fee
- Prepaid fees for Escrow (taxes, insurance, etc.)
- Any other closing costs (title insurance, recording fees, etc.)
Always remember that closing costs are negotiable and you or your real estate agent can ask the seller to pay many of these VA loan fees in your purchase offer.
- Why Resource Financial?
- With no lender fees and amazing customer service, Resource helps you make the most of your benefits with the VA home loan program.
- The VA allows a fee of up to 1% of the loan amount to cover lenders’ costs for underwriting and processing your VA loan. These are called origination or lender fees. Resource Financial does not charge these lender fees. We pass these significant savings on to you.