Being a veteran provides a lot of benefits that the government supports. One of the real advantages that has been around for many, many decades has been the VA mortgage loan. The VA loan is one of the best programs out there. The pricing is significantly better with a VA loan than that of a comparable conventional because the VA loan is a government-backed loan, There are a wide variety of terms available too, including a 30 year fixed, a 15 year fixed, even ARMs and even jumbos can be done under VA. Also, t’s not limited to a certain dollar factor.
Whether it’s a home purchase or refinancing, you can do a VA loan. With a VA loan, one of the best advantages is that it has a no money down option. It doesn’t matter if you are purchasing a new build, a resale, even a manufactured home. Also, because the government backs the loan, there’s no private mortgage insurance. That can save veterans thousands of dollars.
If you have served in the military or are currently serving and would like to purchase a home, refinance your home or do a home equity loan, please contact United Mortgage Insurance in Arizona at (480) 503‑3533, or you can call Mike Goblet directly at (480) 220‑2329 or email him at mike.goblet@umfginc.com.
Matt O’Brien: Welcome back to another segment of Arizona Mortgage News. We’re here with Mike Goblet, our Arizona expert in mortgage and all things that are important to you when it comes to your business in mortgages.
Mike, today’s topic was a write in. It sounds like we’re talking about vets today. The question was, “What are the advantages of a VA mortgage?”
Mike Goblet: Yeah, good morning, Matt. I thought this would be a great topic, timely for a lot of reasons. As we all know and are learning, being a vet provides a lot of benefits that the government supports the vets on.
Now, there’s obviously been some downside on the medical side, but that’s being rectified. One of the real advantages that has been there for many, many decades has been the VA mortgage support, the home loan, the VA mortgage home loan program.
Matt: All right. Well, our veterans have a benefit here. Do they have better pricing and options than the rest of us civilians?
Mike: There are many advantages. I think it’s one of the best programs out there, the VA loan. Let me say, first of all, if anybody listening is eligible for a VA mortgage, thank you for your service.
Matt: Absolutely.
Mike: I greatly appreciate it and now it’s time to reap the benefits of that service as well.
Matt: So what are the benefits, I’m excited to hear.
Mike: You asked right away, is it better pricing, the answer is because it’s a government backed loan, yeah. Actually, the pricing on a comparable conventional loan is significantly better on a VA. So that’s a good place to start.
But it doesn’t end there. You still have a wide variety of terms, meaning a 30 year fixed, a 15 year fixed, even ARMs and even jumbos can be done under VA. It’s not just limited to a certain dollar factor.
Matt: Oh, wow.
Mike: Also, whether it’s a purchase or it a refi, you can do a VA loan. One of the real advantages of a purchase is that it’s not money down. You can do as little as no money down or, obviously, you can choose to put money down. That’s on either a new build, a resale, even a manufactured home.
I can tell you, I did my first home in 1972 on a no money down VA loan and it really helped me get my family established. More importantly, into the housing market at a time when just coming back from my tour of duty and I didn’t have a lot of savings. It provided a huge benefit, having no money down.
Matt: The no money down, does that also apply for jumbo loans?
Mike: The answer is, yes. Now, there’s a little different situation, meaning when it gets into a jumbo it has to be calculated differently and there is money involved. But it’s not specifically designed as money down. It has to do with certain ratios.
Matt: Ah, very cool.
Mike: It’s a great place and I can tell you, as I said, my first my home was that and it allowed me to not only get my family established into a home, but to leverage that asset into purchases throughout the rest of my life. It was a wonderful start, and it’s still available even after the loan is paid off.
I can do a VA loan today if I chose to.
Matt: Very cool. There are benefits to this wonderful VA loan.
Mike: There are. If you want to do a refi, you can do a rate and term. You can do a cash out, to 100 percent loan to value. If you’re already in a VA loan and want to refi, you can do what’s called an interest rate reduction loan and that’s from one VA loan back into another, without additional proof of income.
Basically it’s saying, “If you’ve been making the payments, you should be able to keep making the payments if it’s actually a lower rate.”
Matt: It’s really a really good program whether it’s a purchase or refi.
Mike: Very cool.
Matt: I’m going to go back, I think the fourth and most important part is, no MI. Regardless of the loan to value on the purchase or on a refi, there’s no private mortgage insurance, even if there’s less than 20 percent equity.
Mike: Wow. All right, well, this is a great government program here for our veterans. Active, retired, part time, reserve, all eligible.
Matt: That’s really the real key. Obviously, you have to be or have been in the service and be able to prove your eligibility with what’s called the DD214. If anybody in the industry or within the military will know what that is. It’s only on primary residence. It’s not there to help people get rich off an investment property or even a second home. It can really only be used on primary residence.
There’s one other downside that needs to be factored in. That is that there’s a guarantee fee on the part of the government. Now, the good news is that guarantee fee ‑‑ and it’s similar to one that’s there on an FHA loan ‑‑ but it can be rolled into the loan amount or it even be paid for with the yield spread or YSP that I’ve talked about from the lender rebate, if the right rate is chosen.
There are even some real options there.
Matt: Very nice. Well, those are some good opportunities. It sounds like there are some veterans out there, active, reserve, retired, they need to get in touch with you, Mike.
Mike: Yeah. If you think you’re eligible or know somebody that’s eligible, give me a call and let’s talk about it and see how the program can work for you. Whether you want cash out, rehab for home improvement, debt consolidation, or buy a new home. There are great opportunities behind the VA loan.
Matt: Mike, what’s the best way to get in touch with you.
Mike: The number here at the office is (480) 503‑3533, or you can call me on my cell phone at (480) 220‑2329 or email me at mike.goblet@umfginc.com.
Matt: Excellent, well, this is a cool segment. I hope all the veterans out there will take advantage of this opportunity if they haven’t already. We’ll look forward to our next segment with you, Mike.
Mike: Thanks, Matt. I look forward to it as well. You have a good rest of the day.
Matt: You too. Thanks Mike.
Mike: Bye now.
