A Sneak Peak into 8 Important Elements

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A Sneak Peak into 8 Important Elements of a VA
Loan
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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

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8 Important Elements of a VA Loan

• Reusability
• Types of Home
• Occupancy
• Lender
• Bankruptcy and Foreclosure
• Mortgage Insurance
• Limit on Co-borrowers
• Prepayment Penalty

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Reusability
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• 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

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Types of Home
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• Primary idea to purchase
• Condo
• Single-family home
• Multi-unit property
• Modular housing
• But also
• Downtown food shop
• Working farm
• Fixer-upper

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Occupancy
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• VA backed home
• For
• personal use Primary residence (needs veterans
  to certify)
• Not for
• purchasing investment properties
• vacation homes
• Veterans to occupy home within 60 days of purchase

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Lender
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• 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

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Bankruptcy and Foreclosure
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• Bankrupt account on credit report doesnt matter
• VA loan benefits still available if you
  experience foreclosure

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Mortgage Insurance
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• Mortgage insurance is monthly fee when down
  payment is less than 20
• No down payment required
• No mortgage insurance required

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Prepayment Penalty
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• Flexibility in increasing the size of monthly
  installments
• No Fixed Monthly installment
• Can pay lumpsum and save on interest

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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

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Thank you