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Quicken Loans Lender Review for 2020

The Bottom Line

4.5/5 stars

Quicken Loans, one of America’s largest mortgage originators and servicers, is well known for its flagship online mortgage platform Rocket Mortgage. With a commitment to outstanding customer service, Quicken has been ranked #1 by J.D. Power in mortgage origination customer satisfaction for 10 consecutive years and #1 in mortgage servicing for seven consecutive years.

Check today's VA rates by completing this quick online form.

Pros and Cons of Quicken Loans

Serving their clients for more than 35 years, Quicken Loans has revolutionized the mortgage lending process by providing a technology-driven, streamlined process for purchasing a home or refinancing a home loan.

Quicken Loans’ lending process is designed to create a simplified, hassle-free experience with a minimum amount of paperwork for their customers.

Unlike most banks and other mortgage lenders, Quicken operates online and conducts business through a sophisticated web-based lending platform. The company offers a fast application process along with support to help borrowers choose the right mortgage product and online tools to keep customers apprised of the status of their loan right through closing and settlement.

Pros of Quicken Loans

Customer-centric, simplified and secure online mortgage process

Home loan experts available to match customers’ financial situation and goals with the best mortgage loan to meet their needs

FHA, Conventional, VA and Jumbo loans are available for home purchase and refinancing at competitive interest rates

First-time home buyer’s programs in all states

Online verification process eliminates the need to provide many paper documents

Home buyer resources including online mortgage calculators, buyers’ guides and access to Home Buying Experts – online, by chat and by phone

re-qualification and pre-approval letters provide home buyers with more certainty through Quicken’s Verified Approval℠ program

Refinance loans available to reduce a homeowner’s interest rate, to tap existing equity or to shorten loan term

Quicken services 99% of the mortgage loans originated by the company – eliminating the transfer of servicing to another lender after origination

Cons of Quicken Loans

Quicken Loans does not offer face-to-face engagement with their customers

Borrowers without Internet access will have difficulty with the mortgage application process as most Quicken loan functions are online

Quicken does not offer VA construction loans or allow for VA loans on manufactured homes

How To Get A Mortgage With Quicken

Quicken’s application process is highly efficient. Borrowers can submit required documents and underwriting materials online through the Rocket Mortgage portal. 

No fee is required to submit an application. Interest rates, points, and fees are already incorporated into Quicken’s options whether you are seeking a loan to purchase a home or to refinance an existing mortgage loan.

Quicken’s tools for borrowers are designed to assist loan applicants through the process. In addition to a Home Buyer’s Guide and Refinance Guide, customers have access to online calculators to estimate monthly payments, calculate the maximum home price they can afford, and even create an amortization schedule to see how monthly payments will be applied to the loan balance over time.

Get started by completing this quick online form.

Buying a Home With Quicken

Whether buying a primary residence, second home, or investment property, Quicken offers a wide selection of mortgage loan options. With a step-by-step process to assist mortgage applicants, Quicken’s online resources help customers assess their readiness to purchase a home by explaining qualification and down payment requirements.

Resources are also available to help home buyers work with real estate agents throughout the entire buying and financing process.

Quicken’s home buying mortgage products include:

FHA loans: Very popular with first-time, lower-income, and/or lower-credit home buyers.

VA loans: Designed for U.S. Veterans and offering many benefits including no requirement for a down payment.

Conventional loans: A good option for buyers with good credit scores and low levels of personal debt.

Jumbo loans: For buyers seeking to borrow more than the amount permitted for conventional loans (greater than $510,400 in most states).

Quicken also offers their Verified Approval℠ program, designed to help home buyers stand out among competing bidders and cash buyers in the housing market. Once a customer’s credit, income, and employment are reviewed, Quicken may issue a Verified Approval℠ letter to a home buyer. This letter reflects their purchasing power and provides assurance to home sellers in today’s competitive market.

Refinancing a House With Quicken

With interest rates near historic lows, many existing homeowners are refinancing their loans to lower their monthly payments, shorten the term of their loan even take cash from their home equity. Quicken offers refinancing options to help borrowers achieve their objectives in a fast, streamlined manner.

Refinance Experts are available to provide customers with assistance in selecting the best loan option – both by phone and online.

Quicken’s refinance mortgage options include FHA, Conventional, and VA loans with a wide variety of terms (fixed rate, adjustable rate, 30 years, 15 years, etc.). For VA homeowners, Quicken also offers 100% VA cash-out loans, meaning you can borrow up to the full value of your home.

If you don’t need cash and only want to reduce your rate and payment, Quicken offers the VA Interest Rate Reduction Refinance Loans (IRRRL) with no income/no asset and no appraisal options.

Quicken will handle all steps of the refinancing process – from application through to closing – with loan status reports available to keep customers informed of their progress.

Once a refinance loan application is approved, borrowers can determine when they would like to close their loan and chances are good that Quicken will service the loan for the duration of its term. Quicken services 99% of their loan originations, including the collection of monthly payments, maintaining tax and insurance escrows and providing timely tax information to their customers.

Check today’s VA refinance rates.

Special Perks for Veterans With Quicken

Quicken Loans is a premier VA lender and provides a high level of customer support to veteran loan applicants. From the availability of Mortgage Experts to online guides, Quicken’s systems are designed to support veterans throughout the mortgage process.

Quicken’s representatives will explain eligibility requirements for a VA Loan Certificate and determine if the borrower meets VA’s residual income requirements., The lender will also share special VA program information designed for borrowers who have a service-related disability.

Through Quicken’s VA lending programs, borrowers may also be eligible to take advantage of VA’s seller concessions policy, allowing for home sellers to contribute larger amounts of funding toward closing costs.

Eligible veterans and their family members may also qualify for exemption from VA’s funding fee or for grants for disabled veterans. VA grant programs include Specially Adapted Housing (SAH) for the building or remodeling of a home with disability-related modifications and Special Housing Adaptation (SHA) for the adaption of an existing home already owned by the veteran or a home the veteran intends to purchase.

Veteran Community Involvement

Quicken Loans is well known for its Veteran Hiring team, a group of professionals engaged in the recruitment of veterans to join the company. With their attention focused on veterans, transitioning service members, military spouses, and members of the National Guard and Reserve, Quicken has made a commitment to hiring, training, and retaining eligible career candidates throughout their organization.

Quicken also supports a number of partnerships and initiatives including Built For Zero, the Pat Tillman Foundation, Michigan Veterans Affair Agency (MVAA), Military Spouse Employment Partnership (MSEP), and Employer Support of the Guard and Reserves (ESGR). The Quicken Loans Community Fund, a philanthropic arm of the company, supprts inclusive communities through data-driven investments in housing, employment, and public life. Since 2010, the fund has invested over $200 million to address complex issues like tax foreclosure and chronic unemployment. The fund has also organized Quicken team members to provide more than 725,000 volunteer hours nationwide, including 400,000 in Detroit.

Should You Use Quicken Loans?

As the nation’s largest mortgage originator and one of the largest servicers, Quicken Loans offers an online mortgage process that saves time and money for its customers. The company’s competitive rates, streamlined underwriting, and award-winning customer service make it a great option for consumers shopping for a mortgage loan.

Ready for a VA mortgage? Talk to a lender today. https://ift.tt/2HMtcKT

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First Time Home Buyer Programs for Veterans

Numerous programs exist to help veterans and service members who are first-time buyers with their closing costs and other expenses.

Indeed, it’s perfectly possible for those who are eligible for VA home loans to become homeowners with very little — or even nothing — in the way of savings.

Check today's VA rates by completing this quick online form.

Advantages of VA home loans for first-time buyers

The most famous housing benefit associated with the VA loan program is the zero down payment requirement. That can be hugely valuable for first time home buyers.

But it’s just one of a whole range of advantages that come with a VA home loan. Here are some more.

Low mortgage rates for VA loans

According to the Ellie Mae Origination Report, in September 2020, the average rate for a 30-year, fixed-rate mortgage backed by the VA was just 2.78%. That compares with 3.02% for conventional loans (ones not backed by the government) and 3.01% for FHA loans.

So VA home loans have lower rates. And that wasn’t just a one-time fluke. VA mortgage rates are lower on average than those for other loans — month after month, year after year.

Lower funding fees for first-time buyers

When you buy a home with a VA loan, you need to pay a funding fee. However, you can choose to pay it on closing or add it to your loan so you pay it down with the rest of your mortgage.

But, as a first-time buyer, you get a lower rate. For you, it’s 2.3% of the loan amount (instead of 3.6% for repeat purchasers) if you make a down payment between zero and 5%.

That’s $2,300 for every $100,000 borrowed, which can be wrapped into the loan amount. It’s a savings of $1,300 per $100,000 versus repeat buyers.

Put down more and your funding fee drops whether or not you’re a first-time buyer. So it’s 1.65% if you put down 5% or more, and 1.4% if you put down 10% or more.

Although it might seem like just another fee, the VA funding fee is well worth the cost since it buys you the significant financial benefits of a VA home loan.

No mortgage insurance for VA loans

Mortgage insurance is what non-VA borrowers usually have to pay if they don’t have a 20 percent down payment. Private mortgage insurance typically takes the form of a payment on closing, along with monthly payments going forward.

That’s no small benefit since mortgage insurance can represent a significant amount of money. For example, FHA home buyers pay over $130 per month on a $200,000 loan — for years.

Mortgage insurance vs funding fee

Let’s do a side-by-side comparison of the mortgage insurance vs. funding fee costs of a $200,000 loan:

  VA Loan FHA Loan Payable on closing $4,600* $3,500 Payable monthly $0 $133 per month** Paid after five years (60 months) $4,600 $11,500

*First-time buyer rate with zero down payment: 2.3%. $200,000 x 2.3% = $4,600 ** $200,000 loan x 0.8% annual mortgage insurance = $1,600 per year. That’s $8,000 over five years. $1,600 divided by 12 months = $133.33 every month

It’s clear that mortgage insurance can be a real financial burden — and that the funding fee is a great deal for eligible borrowers.

Better yet, that makes a difference to your buying power. Because, absent mortgage insurance, you’re $133 a month better off. And that means you can afford a higher home purchase price with the same housing expenses.

Ready to buy a home? Start here.

Types of first-time homebuyer programs for VA loans

You may find two main types of assistance as a first-time buyer:

Down payment or closing cost assistance

Mortgage credit certificates

Down payment and closing cost assistance

There are thousands of down payment assistance programs (DAPs) across the United States and that includes at least one in each state. Many states have several.

Each DAP is independent and sets its own rules and offerings. So, unfortunately, we can’t say, “You’re in line to get this …” because “this” varies so much from program to program.

Some help with closing costs as well and down payments. Some give you a low-interest loan that you pay down in parallel with your main mortgage. Others give “forgivable” loans that you don’t pay back — providing you stay in the home for a set period. And some give outright grants: effectively gifts.

Mortgage credit certificates (MCCs)

The name pretty much says it all. In some states, the housing finance agency or its equivalent issues mortgage credit certificates (MCCs) to homebuyers — especially first-time ones — that let them pay less in federal taxes.

The Federal Deposit Insurance Corporation explains on its website (PDF):

“MCCs are issued directly to qualifying homebuyers who are then entitled to take a nonrefundable federal tax credit equal to a specified percentage of the interest paid on their mortgage loan each year. These tax credits can be taken at the time the borrowers file their tax returns. Alternatively, borrowers can amend their W-4 tax withholding forms from their employer to reduce the amount of federal income tax withheld from their paychecks in order to receive the benefit on a monthly basis.”

In other words, MCCs allow you to pay less federal tax. And that means you can afford a better, more expensive home than the one you could get without them.

Speak with a mortgage specialist today.

Dream Makers program

Unlike most DAPs, the Dream Makers Home Buying Assistance program from the PenFed Foundation is open only to those who’ve provided active duty, reserve, national guard, or veteran service.

You must also be a first-time buyer, although that’s defined as those who haven’t owned their own home within the previous three years. And you may qualify if you’ve lost your home to a disaster or a divorce.

But this help isn’t intended for the rich. Your income must be equal to or less than 80% of the median for the area in which you’re buying. However, that’s adjustable according to the size of your household. So if you have a spouse or dependents, you can earn more.

It’s all a bit complicated. So it’s just as well that PenFed has a lookup tool (on the US Dept. of Housing and Urban Development (HUD’s) website) that lets you discover the income limits and median family income where you want to buy.

What help does the Dream Makers program offer?

You’ll need a mortgage pre-approval or pre-qualification letter from an established lender to proceed. But then you stand to receive funds from the foundation as follows:

“The amount of the grant is determined by a 2-to-1 match of the borrower’s contribution to their mortgage in earnest deposit and cash brought at closing with a maximum grant of $5,000. The borrower must contribute a minimum of $500. No cash back can be received by the borrower at closing.”

So supposing you have $2,000 saved. The foundation could add $4,000 (2-to-1 match), giving you $6,000. In many places, that might easily be enough to see you become a homeowner.

You don’t have to use that money for a VA loan. You could opt for an FHA or conventional mortgage. But, given the advantages that come with VA loans, why would you?

The Dream Makers program is probably the most famous of those offering assistance to vets and service members. But there are plenty of others, many of which are locally based.

For example, residents of New York should check out that state’s Homes for Veterans program. That can provide up to $15,000 for those who qualify, whether or not they’re first-time buyers.

Start your home buying journey here.

State-By-State Home Buyer Assistance Programs

We promised to tell you how to find those thousands of DAPs — and the MCC programs that are available in many states.

It takes a little work to find all the ones that might be able to help you. But you should be able to track them down from the comfort of your own home, online and over the phone.

A good place to start is the HUD local homebuying programs lookup tool. Select the state where you want to buy then select a link and look for “assistance programs.”

Your best starting point is probably the state’s housing finance office though it might be called something slightly different. You should find details of programs or just a list of counties with phone numbers. Call the number where you want to buy, explain your situation and ask for advice. It’s their agents’ jobs to point you to local, state, or national programs that can help you.

If you look in the right place, you could secure some very worthwhile financial help to assist you in buying your first home.

Check today's VA rates by completing this quick online form. https://ift.tt/3mr1lhX

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Review of Navy Federal Credit Union for 2020

The Bottom Line

4.5/5 stars

Navy Federal, the world’s largest credit union with more than 9 million members, ranks as one of the top five VA lenders. They offer competitive rates, a high level of customer satisfaction and a user-friendly web site. Navy Federal offers VA mortgage loans, Adjustable Rate Mortgages (ARMs) and refinances.

Check today's VA rates by completing this quick online form.

Pros and Cons of Navy Federal

Initiated at the end of the Great Depression in 1933 by seven Navy employees who wanted to help their co-workers and themselves reach their financial objectives, Navy Federal is a member-owned, not-for-profit credit union. Because of that, they offer good rates, lower fees, and some good discounts.

In 2019, Navy Federal received 882 points out of 1,000 in the J.D. Power U.S. Primary Mortgage Origination Satisfaction Study. That put them in third place, points-wise. They also received the distinction of being one of Fortune’s 100 Best Companies to Work For in 2019. That same year the Reputation Institute named Navy Federal, The Most Reputable Company in Financial Services while Computerworld ranked Navy Federal in the top 10 of Best Places to Work in IT.

But even with winning these awards and more, Navy Federal isn’t flawless, so their advantages and drawbacks are listed below.

Pros of Navy Federal Credit Union

Relock your loan if rates go down, at no cost, with Freedom Lock

No down payment*

No private mortgage insurance (PMI)

VA loan specialists

Track your loan status

Rate match guarantee

Online convenience

No minimum credit score

Live phone support 24 hours a day, seven days a week

*Although a down payment may not be needed nor a minimum credit score, the VA requires any lender to review the borrower’s entire loan profile.

Cons of Navy Federal Credit Union

Customized rates not available before you apply for a loan

Must be a Navy Federal Credit Union member to use their services

Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors

Only 342 branches nationwide

No USDA loans

Talk to a lending specialist today.

How to Get a Mortgage With Navy Federal

First, you need to be eligible to join Navy Federal, which means you’re active military or a veteran of the U.S. Air Force, Army, Coast Guard, Marines, Navy or National Guard or Reserves; or you’re a spouse of a veteran. After you join, then you can set your home buying in motion.

Navy Federal offers the following types of mortgages:

VA loans with zero down

Military Choice for service members, reservists, and veterans who have exhausted their VA loan benefits, also with zero down

Homebuyers Choice to qualified buyers with zero down

Adjustable Rate Mortgages (ARMs) that start with a low fixed interest rate for a set term, and then adjust according to a certain index. Depending on the particular ARM, the down payment runs from 0-10 percent.

If you’re in the market for a vacation getaway place, Navy Federal finances second homes, as well. They also offer several options for refinancing.

The Homebuying Journey with Navy Federal

The home buying journey should start with a little education and end when you’re handed the keys to your dream home. After a Navy Federal home loan advisor verifies your eligibility for a VA loan, you can take the recommended steps described below:

1. Do your research. Before stepping out to shop for a new home, Navy Federal suggests you do some research. Learn some of the terms pertaining to mortgages and lenders, then decide whether you prefer a fixed rate loan or an adjustable rate loan.

2. Tally the costs. Gather more information about closing costs and the mortgage payment you can best afford, so you know to look for homes in that price range.

3. Check your credit. Get your free credit report from Experian, Transunion, Equifax, or annualcreditreport.com. Fix any errors you find.

4. Contact RealtyPlus. There you’ll work with a RealtyPlus coordinator to ensure smooth sailing and a positive home-buying experience. That coordinator will suggest a real estate agent who specializes in the veterans housing market who will guide you through the home-search process. That agent will contact you within one business day after receiving your request. Read more about RealtyPlus in the “special perks for veterans” section below.

5. Get your preapproval letter. This document spells out how much you can pay for a home, and it lets the sellers and agents know you mean business. It may even give you some bargaining power.

6. Gather the right paperwork. Instead of scrambling at the last minute trying to find what you need, have your tax returns and bank statements handy, either online or in paper form. This makes it easier for everyone involved.

7. Go house hunting. Enjoy the time you spend looking for your ideal home, knowing you’ve done all the preparing and planning you need to ahead of time.

8. Wait for final approval. Your home loan advisor will let you know when your loan is approved. This is also the time to schedule an appraisal and inspection plus shop for title insurance and homeowner’s coverage.

9. Meet at closing. Sign papers, pay fees, and cheer.

10. Take ownership. Get the keys to your new home and start packing.

Ready to buy a home? Start here.

Buying a House with Navy Federal

Navy Federal gives its members some valuable benefits when buying a home. For example, if you find a better rate, they will match it or pay you $1,000.

Navy Federal Rate Match

Navy Federal’s rate match guarantee does come with some requirements: You must lock your rate with Navy Federal before submitting a rate match for the credit union to beat. You must get a loan estimate from the competing lender that’s dated within three calendar days of you locking your rate with Navy Federal.

HomeSquad

HomeSquad, launched in 2019, is a digital mortgage application tool that lets you track your loan status any time of the day, gives you a personalized checklist, sends you notices when you reach certain milestones, and upload documents.

Their online services also have many valuable calculators so you can figure out ahead of time how the numbers will crunch. They have calculators so you can compute your closing costs, monthly payment, compare terms, and your mortgage tax deduction.

Military Choice / Military Choice Jumbo

You can use Military Choice to purchase a home if you’ve exhausted your VA loan entitlement with a previous home purchase or refinance. It comes with zero down and no PMI. However, rates are a bit higher than the going standard VA loan rate, and you must pay discount points. Still, it’s a great choice for those who need zero down but have no entitlement remaining. Navy Fed also offers a Jumbo option for loans that are over conforming loan limits, currently $510,400.

Click here to find out how much house you can afford.

Refinancing a House with Navy Federal

A refinance is sought after for one of four reasons; to get a lower interest rate, to take cash out of the equity you have in your home, to shorten the time you pay, or to convert from an ARM to a fixed rate loan.

Navy Federal offers the following types of refinances:

A refinance loan with no private mortgage insurance and fixed rates

VA Streamline Interest Rate Reduction Refinance Loan (IRRRL) where you can get a lower rate, a smaller payment, and you don’t have to come up with much cash

Military Choice, for those who do not have remaining VA home loan entitlement. Keep in mind that these come with higher rates than traditional refinances, and there’s even a 0.75% add-on to the rate if the current loan is not with Navy Fed.

HomeBuyers Choice with a fixed rate and no PMI, a conventional fixed rate with no PMI, and interest only-loans for both primary and secondary homes.

To see how long it will take you to break even on one of these refinancing products, use Navy Federal’s “mortgage refinance break-even calculator.” Members receive even more benefits.

Ready to refinance? Connect with a specialist today.

Special Benefits for Veterans with Navy Federal

NFCU, a full-service credit union, has a network of 30,000 fee-free ATMs. Their banking product’s benefits include competitive rates for share certificates, no monthly fees on a basic savings account or specific checking accounts, and their term-based savings and money market accounts pay higher rates than most. Members pay no service fees on credit card balance transfers or foreign transactions. Navy Federal’s Optional Overdraft Protection Service goes by the title, OOPS.

If you decide on a Navy Federal home loan, they take care of most everything you need including title services and loan servicing.

Advantages of RealtyPlus

RealtyPlus, the free service mentioned before, offers veterans looking for a home “get acquainted with your neighborhood” packages. These include information about real estate market trends, shopping, attractions, health services, automotive and personal services, government offices, school and school district reviews plus school rankings and test scores.

The most alluring benefit to using RealtyPlus, though, is the cash back you could get after closing, if you stay with your assigned agent. This cash back, between $400-$8,000, is based on the sale and/or purchase price of your new home.

The cash back bonus you get, from RealtyPlus, is offered in most states. Other states either provide you with a gift card or a commission decrease at closing. You’re not even required to get your loan through Navy Federal to enjoy this benefit.

Navy Federal Gives Back to the Community

Under the umbrella of corporate social responsibility, Navy Federal gives back to its members, helps members in need, and strives for an environmentally friendly environment.

Annually Navy Federal members save an average of $289 when banking there. Navy Federal also comes to the rescue and helps members in disasters and during government shutdowns. They also host financial literacy workshops to help members with their money challenges. Their buildings and campuses tend to be energy efficient and Navy Federal recycles tons of materials.

The Bottom Line

As you’re shopping for a mortgage lender, be sure to consider Navy Federal. They offer competitive rates, a high level of customer satisfaction and a user-friendly web site.

Check today's VA rates by completing this quick online form. https://ift.tt/3hw44EX

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USAA Lender Review for 2020

The Bottom Line

4.5/5 stars

When it comes to customer service and knowledge of VA loans, veterans and the military USAA scores an A+. Veterans looking for a new home or to refinance should check out this lender. But do shop around as USAA may not always offer the best mortgage loan rates.

USAA’s benefits outweigh the lender’s drawbacks. Read our review to learn more about what it’s like to work with them.

Check today's VA rates by completing this quick online form.

Pros and Cons of USAA

Twenty-five U.S. Army officers met in 1922 to discuss auto insurance because they hadn’t been able to secure any. Insurance companies viewed military officers as a high-risk population. Those 25 made a pact to insure each other, and that was the beginning of United Services Automobile Association (USAA), which now insures millions.

USAA has all kinds of products for the military besides auto insurance, which includes renters and homeowners insurance. USAA also has banking products and lend for mortgages.

Pros of USAA

Impeccable customer service*

Offers low- and no-down-payment mortgage loans

In-depth knowledge of military, veterans and VA mortgages

Private mortgage insurance (PMI) not required

Free membership so you can use USAA’s other products

Offers a first-time homebuyer program

Services all loans USAA originates

*J.D. Power recently released their 2020 U.S. Primary Mortgage ServicerSatisfaction Study and USAA came in first with 895 points out of a possible 1,000. J.D. Power surveyed 7,300 customers who bought or refinanced a home more than 12 months prior to March 2020. Although the survey asked questions about escrow, billing, and payments, the number one place mortgage servicers fell down was with communication. Lenders either communicate too little or too much and use the wrong method but USAA shined in this area.

Cons of USAA

Only five physical locations in four states

No FHA or USDA loans

No home equity loans or home equity lines of credit (HELOCs)

Higher interest rates than most lenders

Loan applications must be filled out over the phone

How to Get A Mortgage with USAA

First, you need to be eligible to join USAA, which means you’re active military or a veteran of the U.S. Air Force, Army, Coast Guard, Marines, Navy, or National Guard or Reserves; or you’re a spouse of a veteran. After you join USAA, then you can set your home buying in motion.

USAA offers the following types of mortgages:

VA mortgage. You could pay zero down for a home without private mortgage insurance (PMI).

Fixed-rate mortgage. Firm interest rate for the duration of the loan, which is usually 15 or 30 years.

Adjustable-rate mortgage (ARM). Interest rate set for the first few years and then it can change according to the market.

Conventional 97 or first-time homebuyer loan. You may be able to borrow 97 percent of your home price and pay as little as a 3 percent down payment.

Jumbo mortgage. For borrowing a larger amount than the limits on the other types of mortgages.

Get prequalified, which you can do on the USAA website, to see what you can reasonably afford. This will give you some bargaining power when you find your ideal home.

Compare rates with other lenders and if you choose USAA, fill out your mortgage application by making a phone call to 800-531-0341. Gather the documents you’ll need to submit with your application like proof of income (pay stubs), bank statements, and anything else you think might be requested.

Get started by completing this quick online form.

Buying a Home with USAA

Decide which features your new home must absolutely have, but keep that to a low number, then find a trustworthy and reputable real estate agent. Ask friends, family, or business colleagues for recommendations.

With your pre-approval in hand, you’re ready to go house hunting. Do some advanced footwork by visiting open houses and real estate search sites to eliminate some of the obvious “no’s”. That saves you time before you venture out with your real estate agent.

When you’ve found that just-right home, make an offer to the seller with the guidance of your agent. After your offer is accepted, the waiting begins. While you’re on pins and needles, hoping to hear you’ve been approved, is a good time to schedule an inspection of your new home. Ask your real estate agent to recommend a home inspector. You’ll usually pay for the cost, but any necessary repairs can be negotiated with the seller.

Before closing, take a tour of the new home to see that those needed repairs have been made and nothing unexpected has happened. Then you’ll sign the closing papers, probably wire some money for closing costs, and you’ll get the keys to your new home.

Refinancing with USAA

If you’d like to lower your monthly mortgage payments or shorten the time you have left to pay on your home, USAA’s Streamline Interest Rate Reduction Refinance Loan (IRRRL) should do the trick. It’s considered one of the best products on the market today because USAA doesn’t charge an origination fee, and they pay your appraisal, title, and VA funding fees. In 2019 borrowers avoided an average of $2,800 in closing costs with this type of refinance from USAA.

However, remember that we said USAA has higher rates than average? This is probably why. Lenders typically raise their rates slightly to pay for fees and closing costs. This can be a good deal for most, though, as refinancing homeowners rarely want to come up with cash to refinance or roll costs into their loan via a higher balance.

With an IRRRL, you can refinance your entire existing loan balance, no matter what your home is worth now. Plus, there’s very little documentation involved. You don’t need an appraisal, proof of income, or employment verification. That speeds up the process and makes it less costly.

If the mortgage loan on the home you’re refinancing was from a lender other than USAA, you may still have to get an appraisal.

Besides VA mortgage loans and refinancing, USAA provides a host of other advantages to its members.

Check today’s VA refinance rates.

Special Benefits for Veterans

USAA members have an amazing number of benefits. With their life insurance, war zones aren’t excluded, and it’s also guaranteed after you complete your military service.

Members are entitled to discounts on auto insurance, renters insurance when living on a base, moving and storage, travel insurance, home security, and more.

USAA offers a free job search tool, and free tax filing for ranks E-1 to E-5.

Banking customers don’t pay ATM fees and have 24/7 fraud support. Checking accounts are free with no minimum balance and no service fees.

USAA members share in the ownership of the company and may receive a distribution share at the end of the year. That is, if the insurance premiums collected surpass the claims paid.

This lender also contributes to the local and national community.

USAA Gives Back to the Community

During these crazy times, USAA jumped in wherever it could help. Because of nationwide protests, CEO Wayne Peacock, in a statement on USAA.com, said he and his company stand in support of the Black community. He said the company is doing its best to create a diverse and inclusive work environment.

USAA, following suit with other auto insurers, is giving back $800 million to drivers on their auto policies because of COVID-19. That calculates to 20 percent credit for each of three months during the pandemic and affects more than 7 million of their members.

This organization has also made special payment arrangements with members who need financial help on their property and casualty insurance, credit card accounts, consumer loans, and special mortgages.

On a national basis, when we aren’t in a pandemic, USAA gives financial support to nonprofits that operate within their focus areas. Those include military caregivers, families of the fallen and wounded military, and other programs that help military personnel withstand the challenges they face.

Locally, in the five brick and mortar branches’ communities, USAA assists hungry and homeless families, supports STEM (science, technology, engineering, and mathematics) programs, and assists with natural disaster response.

USAA also gives grants to nonprofits that assist the military.

Military personnel and their spouses are encouraged to apply for jobs here. USAA strives to have at least 30 percent of its workforce from the military community. According to Militaryhire.com, USAA scored in the top 22 of companies that promote an environment for veterans to use their existing skills and to have opportunities to train on the job.

Although employee volunteer work has been suspended during the pandemic, employees typically receive two days of paid time to volunteer for the organization of their choice. USAA also matches 1:1 when employees donate to a charitable organization up to $500 per employee annually.

Bottom line

As you’re shopping for a mortgage lender, be sure to consider USAA. Though their mortgage rates may sometimes run a bit higher than other lenders, they offer excellent customer service and knowledge of VA loans.

Ready for a VA mortgage? Talk to a lender today. https://ift.tt/3gK7EuL

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Veterans United Lender Review for 2020

The Bottom Line

4.5/5 stars

Veterans United ranks as a top performer for VA mortgages because of its competitive rates, highly regarded customer service, and the extra ways this lender assists military personnel who want to buy a home.

If you’re considering Veterans United for your mortgage, read our review to learn more about what it’s like to work with this lender.

Check today's VA rates by completing this quick online form.

Pros and Cons of Veterans United

Pros of Veterans United

Specializes in veteran’s mortgages

Customer service rated excellent

Call centers open 24/7

Works with borrowers who have low credit scores

Lends directly, no middle-men involved

No down payment required

No monthly mortgage insurance required

Allows online mortgage applications

Contributes significantly to the Veteran community

Cons of Veterans United

Only operates 25 branches in 18 states

Doesn’t pay closing costs

Not available to non-military homebuyers or some military family members

Doesn’t offer home equity loans or lines of credit

Doesn’t loan for new construction or mobile homes

Fairly high minimum credit score of 660

Working with Veterans United: The Process

To get a mortgage loan from Veterans United, first check your eligibility on their website. When you’ve qualified, you can make an offer on the home you want, and your real estate agent or loan officer will help you through that process.

Although the VA doesn’t require a home inspection, Veterans United suggests you get one. When you’ve locked down a purchase, you can start the loan application online with their easy process:

With Veterans United, you can complete some of the application, save it, and return later to complete it.

You can fill out the application on a desktop, notebook, or smartphone.

Rest assured, any personal documents you upload are secure and safe.

Veterans United gives you the ability to track your application’s progress through closing.

If you have a question or need technical assistance, Veteran’s United’s call centers remain open 24 hours a day, seven days a week. In addition, this lender employs Client Advocates who can also help you.

Anyone who prefers the person-to-person touch or is technology-averse should know that Veterans United only has 25 brick-and-mortar branches nationwide. These are associated with and located in states that have active-military bases.

Even though you can get a VA loan with zero cash down, you will have to pay a VA funding fee up front. Most applicants choose to roll that fee into the loan so they don’t have to come up with it in cash.

Depending on the size of the down payment (if you plan to make one) and whether or not you’ve used a VA loan before, this fee runs between 2.4% and 3.6% for a home purchase.

Get started by completing this quick online form.

Buying A Home with Veterans United

Perusing through Veterans United’s website and social channels, you discover quickly that they take great pride in putting Veterans in homes.

Numerous testimonials from real customers praise VU’s attention to Veteran-specific needs during the home buying process.

Just one example is Veterans United Realty, an independent affiliate partner, has a nationwide network of agents who specialize in working with Veteransveterans.

Veterans United will link you to a licensed agent in your community. These people are familiar not only with the VA loan process, but also with military buyers. To become a part of this network, these agents have been pre-screened for their high degree of customer service, buyer satisfaction, and experience with home buyers.

Before thinking about building the home of your dreams, you should know that Veterans United doesn’t work with VA construction loans. Most lenders don’t. However, what you can do is get a construction loan either from a builder or another lender. When the home is completed, qualified Veteransveterans can then change that short-term construction loan into a VA mortgage with Veterans United.

Veterans United also lends for new modular homes, which are usually built on a site using prefabricated sections. They treat an existing modular home like a stick-built home. But Veterans United doesn’t finance mobile homes.

How to Get a Mortgage with Veterans United

To get a mortgage loan from Veterans United, first check your eligibility on their website. When you’ve qualified, you can make an offer on the home you want, and your real estate agent or loan officer will help you through that process.

Although the VA doesn’t require a home inspection, Veterans United suggests you get one. When you’ve locked down a purchase, you can start the loan application online with their easy process:

With Veterans United, you can complete some of the application, save it, and return later to complete it.

You can fill out the application on a desktop, notebook, or smartphone.

Rest assured, any personal documents you upload are secure and safe.

Veterans United gives you the ability to track your application’s progress through closing.

If you have a question or need technical assistance, Veteran’s United’s call centers remain open 24 hours a day, seven days a week. In addition, this lender employs Client Advocates who can also help you.

Anyone who prefers the person-to-person touch or is technology-averse should know that Veterans United only has 25 brick-and-mortar branches nationwide. These are associated with and located in states that have active-military bases.

Even though you can get a VA loan with zero cash down, you will have to pay a VA funding fee up front. Most applicants choose to roll that fee into the loan so they don’t have to come up with it in cash.

Depending on the size of the down payment (if you plan to make one) and whether or not you’ve used a VA loan before, this fee runs between 2.4% and 3.6% for a home purchase.

Refinance with Veterans United

Qualified homeowners can refinance their homes in two different ways with Veterans United: either a VA Cash-Out Refinance or a VA Streamline (IRRRL) Refinance. With a Cash-out Refinance you can take advantage of your home’s equity and access cash for any number of things. Use the money for home improvements, emergencies, to pay off debt, or any other purpose.

Strange as this may sound, you don’t have to take the cash when you refinance with a VA Cash-Out Refinance. Instead, qualified Veterans with a loan type other than a VA can use this benefit to get a lower mortgage rate, escape an adjustable-rate loan, or get rid of expensive mortgage insurance.

Veterans United also offers a VA Streamline Refinance, also called an Interest Rate Reduction Refinance Loan or IRRRL, with no income or asset verification and without an appraisal on the home you wish to buy. For Veterans who currently have a VA loan, this option lets you lower your interest rate and decrease your monthly payments. Some homeowners can get this type of refinance without an appraisal.

Check today's VA refinance rates.

More Benefits for Veterans

Veterans United offers qualified Veterans savings in the form of a Homebuyer Select Discount. This discount equals one percent of your total loan or an average savings of $2,150.

On their website, Veterans United posts a fairly comprehensive list, by category of where military members receive discounts for products and services. Those categories include apparel, automotive, hardware, insurance, restaurants, sporting goods, storage, and more.

Education, in the form of calculators, guides, videos, and more, is showcased on the Veterans United website. If you don’t find the answer you’re looking for there, you can reach out to customer support 24/7.

Veterans United also offers other loan products besides the traditional VA loan:

USDA loans – Also doesn’t need a down payment but requires a credit score of at least 660 and you must pay mortgage insurance as long as you have this loan.

FHA loans – Down payment can be as low as 3.5 percent, credit score must be 640 or above and it necessitate mortgage insurance.

Conventional loans – Down payments begin at 5 percent, but if you put 20 percent down, you escape paying mortgage insurance.

VA Jumbo loans – This works the best for those who need to borrow more than the VA allows on regular VA loans. A jumbo loan requires a down payment and a minimum credit score of 660 if you’re borrowing more than $1 million.

Lighthouse Program

During military service, finances can easily go awry. You can fall behind on credit card payments or other bills. Even though VA loans have more flexibility and lower credit score requirements than other types of loans, the road to obtaining a mortgage can be rough for those with low credit scores. Veterans United wants to help Veteransveterans overcome any obstacles encountered on the path to home ownership including those associated with your credit scores.

Veterans United will introduce you to their Lighthouse Program, if your credit score prevents you from securing a loan. This free service provides you with a personal credit consultant who will assist you in identifying and correcting any errors on your credit report. It will also give you the tools you need to strengthen your overall credit profile and assist you in setting the goals needed to reduce your debt.

Lighthouse has worked with thousands of Veterans and service members and got them to the point where they can close on the home of their dreams.

Veterans United Gives Back to the Community

Veterans United does more than lend money to Veteransveterans who want to buy a home. Their non-profit charity, Veterans United Foundation, was created to enhance the lives of Veteransveterans and military families. In conjunction with their partners, the foundation provides a transitional community for homeless Veteransveterans, prosthetic limbs, cancer treatment and travel costs, doing whatever it can to give back to Veteransveterans. It also exists to help the communities Veterans United serves.

Money raised for the foundation comes from employee contributions which are matched dollar-for-dollar by Veterans United Home Loans.

When it comes to helping Veterans, it’s not just a matter of the company writing a check. More than 90 percent of the employees donate one percent of their salaries. Sometimes they become the ones helped by the foundation.

Veterans United Foundation also gives away a scholarship biannually so military members and their families can get the education they want and deserve. Since 2012 the foundation has given more than $450,000 to 100 students.

Besides assisting Veterans, and getting them into homes, Veterans United is a Military Friendly Employer and has earned that designation every year for the past six years. Employers must fill out a survey that gauges their commitment, determination and accomplishments in creating sustainable and meaningful opportunities for military personnel. The completed survey, public data sources, and information from Veteransveterans themselves affects which companies are deemed Military Friendly.

Veterans United is a much sought-after employer as indicated by its showing in Fortune Magazine’s list of “100 Best Companies to Work For” in 2020. It came in at No. 17 and has ranked on this list for the past five years.

Ready for a VA mortgage? Talk to a lender today. https://ift.tt/39zWx4t

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Is Using A VA Cash-Out Refi To Pay Off Credit Card Debt Worth It?

Maybe you’ve heard about paying off credit card debt with a VA cash-out refinance, or maybe you know someone who has done it before. Maybe you never even knew that this was possible.

With credit card debt rising in across the nation, it is becoming more common to see people getting cash-out refinances on their home to pay off credit card debt. The appeal is obvious, and if done responsibly, veterans can pay off their credit card debt while saving money on their home.

Ready to refinance? Start here.

What are your refinance options?

For veterans, the best option is likely a VA cash-out refinance, one of two refinance options offered by the VA.

In fact, VA cash-out refinance are the most popular refinance option offered by the VA, outnumbering the total number of IRRRL refis nearly 2:1.

Why is the program so popular? One reason is that veterans can get lower rates, potentially saving them money.

Another is that the cash from the refinance can be used on anything. Veterans use this cash for all sorts of reasons, from funding a remodel to buying a new car.

But one trend that has become popular is using the cash to pay off credit card debt.

So, is it worth it for veterans to pay off credit card debt with a cash-out refinance? That depends on their personal situation. Here are some reasons why veterans should or should not consider this approach.

Click to check today’s VA cash-out rates.

The benefits of paying off credit card debt with a VA cash-out refinance

For eligible veterans, a VA cash-out refinance is likely going to be the best cash-out refinance option available. Here are some of the reasons veterans use this refinance to pay off credit card debt:

Debt consolidation

Instead of paying different interest rates for different types of loans or debt, it’s much easier for most people to track their finances if all their debt is one place.

Debt consolidation can save some veterans a lot of money. If the new rate on the VA cash-out refinance is lower than the interest and rate on the credit card, then the savings are clear. You can essentially have the same amount of money owed while paying much less on monthly payments – and this time, you’re only paying for your house.

The VA cash-out refi is available to all eligible veterans

Unlike the IRRRL, veterans that purchased their home with a different mortgage program, such as FHA or conventional, are still able to refinance through the VA.

On top of freeing up cash to pay off any debt, this refinance can save homeowners money. The VA doesn’t require any type of mortgage insurance regardless of how much equity the homeowner has. Using this refinance can wipe out any of those insurance payments for the duration of the mortgage.

Credit scores

Credit card debt can cause some damage to credit scores. When the debt is paid off, the amount of usable credit on the card increases. This credit utilization is an important part of calculating credit scores, and as it drops, credit scores tend to increase.

Lower monthly payments

Yes, you could potentially lower your monthly payments with a VA cash-out refi, regardless of if you have credit card debt or not. Mortgage rates have changed a lot over the last 10-20 years, and there’s a chance that rates have dropped since you purchased your home.

Click to check today’s refinance rates.

Things to look out for

Each veteran has a different financial situation, and for some a refinance isn’t the best option at this time. Here are some reasons that veterans might want to put off a refinance:

Closing costs

While many veterans save money through their VA cash-out refinance, they’ll still have to pay for the loan through closing costs. This is standard with every type of mortgage and refinance.

Closing costs can easily be offset with long-term savings on the loan, but homeowners will still need to come up with money to pay the costs at closing.

Different rates and terms

Depending on when you first purchased a home, there is a chance that current rates are higher than those you currently have. This would mean paying more on a monthly basis.

The best way to avoid this is to make sure that your mortgage rate isn’t jumping before you accept the refinance.

VA cash-out rates

Curious if a VA cash-out refinance is the best option for you? Eligible veterans benefit by having access, but every situation is different.

The best way to determine if you should get this refinance is to check what rates are currently available. If today’s rates are ideal for your situation, it could mean big savings while erasing credit card debt.

Click to check today’s VA cash-out refinance rates. https://ift.tt/2WMJ4l4

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Best Ways to Increase the Value of your Home

Any homeowner wants to increase the value of their home, especially if they are planning on selling at some point in the coming years.

While many homeowners in the past would simply add a new bathroom or bedroom, it turns out that there are much better ways to increase the value of your home. For example, did you know that a small-scale kitchen remodel can actually increase your home value more than a full kitchen remodel?

Many homeowners love remodels because they can enjoy the changes until they sell while increasing their home value. If you’re upgrading your home with plans to sell at some point, here are some of the hottest and most cost-effective ways to increase the value of your home.

Click to check today's rates.

New garage door

If you want the best bang-for-your-buck, the first thing you should do is replace your garage door.

According to Remodeling Magazine, garage doors add the most value to your home for the price. The average garage door replacement costs $3,470 while adding an average of $3,411 to the value of the home. That’s good for 98.3% of the cost getting recouped.

Of course, these are just averages – replacing your garage door could end up increasing the value of your home by even more.

The added value of a new garage door is also increasing year-over-year, so if you plan on selling in a few years, this is a change to make.

New entry door

The entry door gets ignored far too often in most homes, but it’s something that home buyers subconsciously pick up on.

Replacing your entry door with a steel door can increase your home value by an average of $1,344, and the reasons are clear. Steel doors are much safer than wooden doors, and they are less prone to damage.

So, replacing your door now could protect your home while also adding to its total value.

Kitchen remodel

Getting back to kitchen remodels, a minor kitchen remodel can make your kitchen look better while saving you money.

Homeowners that have done kitchen remodels know that they can be pricey, reaching up to $80,000 for upscale remodels. But minor remodels cost an average of just over $21,000 and add over $17,000 to the total home value.

Check your VA eligibility.

Add a deck

Summer is just around the corner, so here’s a reason to add that new deck you’ve been dreaming about!

On average, wooden decks recoup nearly 83% of the total cost of the project. Add in some personal landscaping and you can easily make your yard a major selling point.

Roofing

The roof isn’t the sexiest part of the house, but it’s what makes a home a home. It’s also tough to sell a home buyer on a home with old roofing.

Roofing replacements recoup nearly 70% of the cost, but just think about how much your roof goes through in one or two years. Getting roofing done now can really help your home’s value down the road – especially if your home is starting to need some new roofing.

Energy efficient changes

The most cost-effective way to increase the value of your home is by making it more energy efficient. Not only is this a draw for home buyers, but every change can help you save money on your monthly payments.

From large changes like putting in energy efficient windows to smaller changes like different lightbulbs, each change you make is going to add to the value of your home. In fact, in some areas these changes can more than recoup the cost of switch.

Funding a remodel

Remodeling and updating your home is much easier said than done, especially when it comes to funding the project.

Fortunately for VA eligible homeowners, there are refinance options available. One of the most common ways homeowners fund remodels is through refinancing, and there aren’t many options better than the VA cash out refinance.

The cash out refi allows you to take money out in the form of cash, meaning you can take out exactly as much as you need for your remodel – and maybe a little extra for anything else.

Click to check today’s VA refinance rates. https://ift.tt/2XdWK7U

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VA Loan Pros and Cons

There are plenty of different mortgage options to pick from. Available to veterans, the VA loan is just like any other mortgage product in that it has its pros and cons. But there are traits specific to the VA loan that can make it seem better than other products — and, at times, potentially worse.

Prior to applying for a mortgage, it’s best to understand some of the main reason why home buyers do or don’t choose to use the product.

Click to begin the home buying process.

Pros of VA loans

Financing

Affordability is one of the biggest hurdles for modern home buyers. With a VA loan, affordability can be much easier.

The VA home loan allows for 100% financing, meaning home buyers don’t need to make a downpayment. This is possible through the VA’s guarantee of the program.

But just because VA loans don’t require financing doesn’t mean home buyers can’t make a downpayment. Most VA home buyers will make a downpayment to lower their monthly payments. With VA loan financing, there’s plenty of flexibility.

Mortgage rates

Another factor affecting home affordability is the rate attached to the loan. Mortgage rates have been trending upward lately, and this pushes monthly payments higher.

The good news with VA loans is that VA rates are consistently lower than those attached to other products. But all mortgage rates are always changing, and while VA rates will usually be lower than other rates, they can still go higher. To get the best mortgage rates for VA loans, home buyers should keep track of rate changes.

Check today's VA rates.

No mortgage insurance

Conventional and FHA loans require mortgage insurance if a downpayment of less than 20 percent is made on the loan. But the VA loan, which is guaranteed, doesn’t require any type of mortgage insurance, even with 100% financing. This further reduces monthly payments, making it easier to afford a home.

VA refinances

VA home loans are the most popular product offered by the VA, but they aren’t the only option. The VA offers two refinance: the VA cash-out refinance and the IRRRL. Both have their own set of benefits, including erasing mortgage insurance from an FHA or conventional mortgage and reducing your mortgage rate. With a VA cash-out refinance, homeowners can even take cash out of their equity and spend it on whatever they want.

Cons of VA Loans

VA appraisal

Of all required aspects of the VA loan, the appraisal can be the most frustrating part for all parties involved. To guarantee the loan, the VA needs to know that homes meet their standards and are priced correctly. This means that they have fairly strict standards with their appraisal process.

While the VA appraisal can slow down the entire process — or bring the purchase to a halt — they shouldn’t scare home buyers away from the VA loan. A good VA agent should be able to help you navigate through the appraisal process with little to no stress.

VA funding fee

One closing cost specific to the VA is the funding fee. This is a flat fee that is due at the time of closing, and the fee changes depending on how many times you’ve used the VA loan.

While the funding fee is a closing cost, home buyers are able to roll this cost into their loan. So, technically, this closing cost can be “avoided” at closing, although it will be factored into monthly payments.

VA loans and home sellers

There are plenty of horror stories surrounding VA loans, and these reach the ears of homeowners. Some homeowners looking to sell will try to avoid VA home buyers strictly because they’re concerned about the loan.

Of course, the loan going through will depend more on the buyer than the product. But homeowners are allowed to choose who they sell their home to, and some may pick a different, similar offer just because it isn’t VA.

Comparing loan products

All loan products have their benefits and drawbacks, so the cons of a VA loan shouldn’t prevent home buyers from taking advantage of the pros.

The biggest difference between VA loans and other popular products is that VA loans have strict eligibility beyond credit scores and DTI. This is how the program is able to offer benefits with relatively small drawbacks.

Those that have military experience but aren’t sure if they’re VA eligible can always check their eligibility.

Click to check your VA eligibility.

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Should You Break Your Lease to Buy a Home?

If you’re currently renting but looking forward to buying your first home, you’ve likely done a bit of legwork at this stage. You’ve met with a loan officer who helped you determine how much you can qualify for and what type of home loan best meets your needs. Your savings account is slowly building as you save money for your closing costs, and maybe even a down payment, though VA does not require one.

Even though you have enough money now, you still have plenty of time to save even more because your lease doesn’t expire for another four months.

And then it happens: your dream home hits the market. Should you break your lease so you don’t miss the opportunity to buy it?

Click here to verify eligibility for a VA home loan.

What Is a Lease?

A lease is a legal, enforceable agreement between you and the owner. A lease will, among other things, highlight your monthly rent, when it’s due and how much your deposit will be. And speaking of your deposit, what happens to your deposit should you break your lease? And speaking of breaking your lease, what will you have to pay?

A lease doesn’t force you to live in the property for a specific time. For example,  if you sign a 12 month lease you’re not forced to stay there for 12 months, you can move out early but if you do, it can cost you. Depending upon the lease, you can be responsible for not only rent for the remaining lease term but also your deposit as well.

Say that your monthly rent is $1,500 and your deposit is equal to your first and last month’s rent on a 12 month lease and you break your lease with four months to go. The damage:

$3,000 – Deposit

$6,000 – Remaining rent obligation

A $9,000 total.

That’s a lot of money.

See if you qualify to buy a home with your VA loan benefit.

Research Your Lease Terms

First, review your lease agreement. If you didn’t read the entire lease before, do it now. You’re looking for an opt-out clause. An opt-out clause allows you to cancel your lease with a predetermined fee. This fee can be as little as one month’s rent but whatever it is, see if your lease has one. This is your easiest out.

Can you sublet your rental? Does your lease strictly prohibit a sub-lease? If not, then you have the opportunity to find a short term renter to fulfill the remaining months on your lease. To entice a would-be renter offer to subsidize the monthly rent by $500 per month. This costs you $2,000 instead of the $9,000 necessary for an all-out break.

Click here to apply for your VA home loan.

If your lease prohibits a sublease, find another renter before you contact your landlord. Better still, find another renter who will pay as much or more of your current rent who is willing to sign a lease extension.

If none of these options work, call the landlord and attempt to work something out. A landlord hates to lose good tenants but if you do have a good relationship you might be surprised how flexible the landlord will be, especially to those who are buying their first home.

Should your landlord stand firm, you need to run a few numbers.

Is Breaking a Lease Worth It?

First, step back and take a breath. Is that house that just hit the market, really, really your “perfect” home? Evaluate your decision not based on emotion but on practicality. Will another, similar home soon show up? Is it worth losing $9,000?

Whether it’s $9,000 or $1,000, breaking  a lease has other considerations.

Are home prices on the increase?

Are mortgage interest rates rising?

Is your rent higher than what your mortgage payment will be?

If you do have to pay a penalty to break your lease, will you recover those fees over time due to property appreciation and/or lower monthly payments?

Finally, don’t forget about the mortgage interest deduction you’ll have with a mortgage

How Does the Mortgage Lender View a Broken Lease?

In reality, a lender doesn’t care if you break a lease or not. A lender wants to know if you paid your lease on time and can prove it with copies of cancelled checks. A lender knows renters will sometimes find themselves in a position to break a lease and this really has no bearing on a loan approval as long as you’ve settled with your landlord. If you’ve broken your lease and paid your penalty, all a lender wants to see is that your penalty didn’t deplete your funds used to buy the house.

Breaking a lease isn’t a crime but it can be expensive. When you need to break a lease, take your time, read your agreement and review all your options. There’s usually a way to please all parties, and sometimes even get into your dream home sooner than you thought you could.

Want to know if you qualify for a VA home loan? Click here.

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Choosing A 15- Or 30-Year VA Mortgage

The classic 30-year mortgage is the most popular — and most affordable — mortgage in America. About two-thirds of U.S. home buyers choose this option, according to the Mortgage Bankers Association.

But it’s not the only option.

VA lenders also offer the 15-year mortgage. These loans come with lower rates. But, since the loan is paid in full in just 15 years, the payment is higher.

So which one is right for you? Fortunately, it’s not difficult to find out whether a 15- or 30-year loan is best for you.

Get today’s VA loan rates here.

30-Year Loans Come With Lower Monthly Payments

The benefits and drawbacks of any loan depend on the borrower’s lifestyle, plans and goals, but in general, the main advantage of the 30-year mortgage is lower monthly payments. The main disadvantage? You’ll pay more interest over the life of the loan.

A 30-year mortgage on a $300,000 house at 4% interest breaks down to a monthly payment of $1,430, not including taxes, insurance, or HOA dues. The monthly payment on a typical 15-year mortgage at 3.25% would be $2,100.

The 15-year loan comes with much higher payments. But lifetimes savings are significant.

If you got a 30-year mortgage on a $300,000 house at 4% interest, you’d pay $215,000 in total interest. A 15-year mortgage at 3.25% would cost less than $80,000 in total interest.

That’s a difference of $135,000.

In this example, the 30-year loan would cost almost three times as much as the 15-year mortgage. On the other hand, the 30-year mortgage’s lower payments would let you save more money to achieve other goals – retirement, college tuition, new furniture, etc. That’s the main reason the 30-year mortgage is so popular. Most people don’t want to be “house rich and cash poor.”

Check 30-year VA loan rates.

Choosing “The Best” Mortgage: 15 vs 30 Year

Who’s best suited for a shorter-term mortgage? In my experience, it’s someone who’s made regular payments on a 30-year mortgage for a while — e.g., for 10 years or so — and wants to refinance to lower the interest rate from (say) 5% to 3.5%. A shorter-term mortgage may also be good for people who are retiring soon and want to pay off their debts beforehand. The shorter term can also be ideal for those who make large down payments and, therefore, have less principal and interest to pay back.

On the downside, the higher payments associated with shorter-term mortgages may force you to buy a smaller house (or at least a less expensive one). Say you want to buy a $300,000 house, and you’re already approved for a 30-year mortgage. If you try to switch to a 15-year mortgage, you may be disqualified because the higher monthly payments will push up your debt-to-income ratio. That’s something else to consider: you can often buy more house with a 30-year loan.

See VA 15-year rates here.

Trying to buy too much house is the biggest problem I encounter as a mortgage loan officer. Every day, I get calls from people who want to buy $400,000 or $500,000 houses, but can’t afford them. Maybe they can afford a $250,000 to $300,000 house, but the more expensive houses push their debt-to-income ratios through the roof.

The people best suited for longer-term mortgages are those who want enough disposable income to save for major life events, with enough left over to pay for everyday wants and needs. Especially if you’re a first-time homebuyer, keep in mind that closing on the property is not the end of the story. Afterward, you may need lots of income to buy furniture, and pay for maintenance, repairs or improvements. Don’t saddle yourself with such high monthly mortgage payments that you’ll have to pay for everything else with credit cards charging exorbitant interest rates.

Define Homeownership Goals

To select the mortgage that’s best for you, begin by defining your goals. What are you trying to accomplish? Do you plan to live in the house for decades, or is it merely a “starter house?” Is the house an investment that you plan to flip or rent? Is it likely that you’ll want to refinance?

Usually, when people plan to live in a house with their families, they want a 30-year mortgage. Knowing they’ll be there for a long time, they want a comfortable monthly payment. Conversely, an investor who plans on holding a property for just a few years might want an ARM (Adjustable Rate Mortgage) or a 15-year mortgage to minimize the total interest. On the other hand, investors might opt for the low monthly payment of a 30-year loan to avoid cash-flow problems when nobody is renting the house.

Click here for today’s mortgage rates.

Create Your Own 15-year Mortgage

If possible, get a 30-year mortgage, but pay more than the minimum every month. In other words, get a 30-year mortgage, but treat it like a 15-year mortgage so you build equity and get out of debt faster. Of course, if you lose your job or need money for other purposes, reduce your payment back to the monthly minimum. (Before adopting this plan, however, make sure your lender doesn’t charge a prepayment penalty.)

In addition, be sure to identify and budget for the closing costs and fees attached to the loan you want. Typical fees include: title insurance, recording fees, appraisals, notary fees and origination fees (i.e., “processing fees”). Depending on the term of the loan, these fees will collectively cost you from $3,000 to $5,000. The origination fee is usually the large single fee associated with home-buying, usually one percent of the total loan amount.

Shop for Today’s VA Loan Rates

Finally, it’s always a good idea to comparison shop. Before deciding on a particular loan and mortgage lender, have a look at the products offered by various financial institutions. Some lenders offer shorter and longer term mortgages in addition to 30- and 15-year mortgages. Who knows? You might find that a 20-year mortgage – or a 10-year mortgage – are better suited to your lifestyle and personal-finance strategy.

Click here to check current VA loan rates.

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Now Is the Time for a VA Refinance: Here’s Why

Now is the ideal time to apply for a Veterans Affairs (VA) refinance on your VA mortgage. Because of the upheaval caused by the current COVID-19 pandemic, and the virus’s future effects on the United States’ economy, the Federal Reserve has taken actions in your favor.

The Federal Reserve has bought an unprecedented amount of mortgage-backed securities (MBS). These are investments like bonds but are bundles of home loans bought from the banks that issued them. The current price of MBSs ranks high in determining your mortgage rate. The Feds have dropped rates hoping to invigorate the economy when we emerge from the COVID-19 pandemic and people return to work.

VA streamline rates are low. Start your refinance today.

What is a VA refinance?

When you already have a VA-backed mortgage loan for your home, a refinance is a brand-new loan. Depending on the type of loan you apply for, you can change your interest rate, thereby reducing your monthly payments or take cash out from the equity you have in your house.

The VA offers three different types of refinancing: The Interest Rate Reduction Refinance (IRRRL) Loan or VA Streamline Refinance, the VA Cash-out Refinance Loan and the Conventional to VA Refinance Loan. For our purposes, we’ll concentrate on the first two, as the Conventional (also includes FHA) to VA Refinance is very rare. This change is beneficial if where you live, current property values have become worrisome.

The IRRRL or VA Streamline Refinance has an abundance of benefits, especially now when many people don’t have jobs. This is the loan for you if you want to refinance to a lower interest rate and a reduced monthly payment.

You do have to fill out an application, as you need to for any of these refinances, but you don’t have to document your income or even prove you’re employed. The VA doesn’t require a credit report either, but your lender will check to make sure you haven’t had more than one late payment in the past 12 months. An appraisal isn’t required.

That’s good news considering some state leaders like New York’s Governor Andrew Cuomo have removed real-estate appraisers from the list of workers considered essential during the pandemic. Appraisers and inspectors in those states may not be working for at least the next month.

A VA Streamline Refinance has few downsides. The outcome of this type of refinance must be a lower mortgage payment for the veteran or a change from an adjustable-rate mortgage (ARM) to a fixed-rate loan. The VA Streamline won’t refinance an existing conventional or FHA loan. You also can’t retain any of the loan in cash.

A VA Cash-out Refinance is the second type of refinance that might be appropriate now. This one replaces your current existing VA home loan and is also a brand-new loan. But unlike the Streamline, it takes some of the equity you have in your house and gives it back to you in cash.

The maximum amount of funds you can get depends on the current appraised value of your property. Most VA lenders will loan you up to 90 percent of the appraised value, except if you live in Texas. Then it’s only 80 percent of the appraised value.

Full documentation is needed for a VA Cash-out Refinance. That includes a new appraisal, verification of both income and employment and a credit score of 620 or higher.

Why do you want a VA refinance loan?

Consider your reasoning for taking out a new VA refi before doing anything else. Do you want a lower monthly payment? Would you like to shorten the time you have left to pay off your home? Do you currently have a VA adjustable-rate mortgage (ARM) and would like to change to a fixed-rate mortgage? All these reasons point to a Streamline Refi.

If you need cash to pay bills, pay off a loan or even for day-to-day expenses in these trying times of the global COVID-19 pandemic, then the VA Cash-out Refi is for you. Once you’ve decided on the reason you want a refinance then you’ll know what you need.

Check today’s VA streamline refinance rates here.

Why should you get a VA refinance now?

Refinances are currently very high in demand. In the same March 26 Washington Post article that talked about the Federal Reserve buying MBSs, Bob Broeksmit, president and CEO of Mortgage Bankers Association said refinances are 195 percent higher than a year ago.

That’s why you want to get all the appropriate paperwork completed accurately and turned in soon so you’re not at the back of a long line.

Here are some tips on preparing for a refinance.

Steps to get a VA Streamline refinance:

Shop for a VA-approved lender online – consumer lenders, banks, and financial institutions are all open because they are considered essential during the COVID-19 pandemic.

Provide information on energy-efficient improvements – only if you plan to use some of this loan (it can be up to $6,000) for making your home more energy-efficient.

Pay your mortgage on time – Verification by your lender of on-time mortgage payments needs to be provided to the VA.

Fill out the refi application – check for completeness and accuracy.

Steps to get a VA Cash-out refinance:

There are no restrictions on how you use this money once you get it.

Shop for a VA-approved lender – terms and fees vary so look for the best option for you.

Fill out the new loan application – accurately and completely.

Find your Certificate of Eligibility (COE) – if you can’t locate it, you can apply for a new one. Visit https://www.vba.va.gov/ and search for “VA Form 26-1880.”

Provide paycheck stubs – These need to come from the most recent 30-day period.

Supply your lender with W-2 forms – These should be for the past two years.

Give your lender your federal income tax returns – also from the past two years, although not all lenders require these.

Check your credit – so you’ll know if you meet your lender’s and VA standards.

Hand over any other information your lender requires.

Have money available – for VA funding fees and closing costs. By providing everything needed, you’ve done your part to ease the lender’s workload and to expedite your refinance.

Ready to refinance? Start here.

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VA Streamline Refinance Helps Reduce Rising Closing Costs

Whether you are buying a home or refinancing your existing mortgage, closing costs can add up. Depending on your specific program, the size of your loan, and the state you live in, sometimes closing costs can add thousands of dollars onto the principal.

One group of borrowers who are enjoying lower VA loan closing costs are VA Streamline Refinance candidates. Also called, IRRRL (VA Interest Rate Reduction Refinance Loan), this appealing refinance program is specifically for veterans or military service members who already have a VA home loan. When these borrowers refinance, they get to enjoy the perk of not being charged as many fees that often inflate closing costs.

Check today’s VA streamline refinance rates here.

VA Loan Closing Cost Savings

First, a bit about closing costs in general. Typically, for a home refinance, closing costs can include credit fees, an appraisal, paying points, escrow and title fees, lender fees (for handling your loan), and insurance and taxes. As a result of more government regulation, costs have risen as lenders comply with new rules, according to experts quoted in the Bankrate study. Extra costs are passed on to borrowers.

Closing costs can vary drastically by lender and are sometimes used to compensate for a lower interest rate, so be sure that you research these expenses by looking at the lender’s Good Faith Estimate form carefully, which will break down the costs for you.

The good news for VA streamline refinance consumers is that many traditional closing fees do not apply, or are not allowed to be charged to veterans. For starters, VA Streamline refinancing does not require a home appraisal, so right off the top, that knocks off around $500 from the total closing costs.

Request a free VA streamline closing cost estimate here.

Another major benefit of the IRRRL loan is that the process moves very quickly, typically less than one month from application to closing. The lender does not have to review W2s, paystubs, tax returns, or bank statements, which speeds up the process.

A shorter loan process means borrowers need a short loan lock. The shorter the lock, the cheaper it is. So a borrower who locks their VA streamline mortgage rate for 30 days will pay less than someone who has to lock for 45 or 60 days.

Then there are fees that military members and veterans who are borrowing under the VA refinancing program are simply not allowed to pay. These include escrow fees (which usually amount to hundreds of dollars), as well as loan application, processing, or brokerage fees.

Beyond Closing Costs

Besides saving money on the closing, the VA streamline program offers numerous other benefits as well.

Energy-efficient improvements can be included in the loan amount. If you wish to make upgrades to your home that fall within the requirements of the program, you can add up to $6,000 of those improvement costs into your new mortgage.

Lower VA funding fee than for a VA purchase loan. The IRRRL funding fee is 0.5 percent of the loan amount, making it much less costly than the typical 2.3 percent that first time VA home loan recipients must pay (view current funding fee charts here.)

Very lenient credit score minimums. You don’t have to have stellar credit to qualify for the VA streamline program. In general, as long as your current mortgage is in good standing, meaning you were not 30 days late on your payment more than once in a 12 month period, then you should be able to transition to the new loan seamlessly. As mentioned above, there are usually no income verification requirements.

Check today’s VA streamline rates.

Closing costs can be rolled in. You may hear advertisements for “no closing costs,” but what that really means is that the charges that you are responsible for do not have to be paid up front. Borrowers can choose to add them onto the loan so they don’t have any exorbitant out-of-pocket expenses on closing day. Another option is that the lender could pay the costs, but that will likely mean you’ll get a slightly higher interest rate on the loan.

VA Streamline refinancing is ideal for people who are currently paying off their VA home loans, and want to take advantage of lower interest rates. Over time, a lower rate can equate to thousands of dollars in savings, while also lowering your monthly mortgage payment. With the added bonus of lower closing costs, the IRRRL is definitely an option worth exploring.

Request a free VA streamline rate quote here.

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Hooyah To Home Buying The Navy Way

As defenders of the seas, Naval Service Members should have the luxury of returning from duty to their homes ashore. But wouldn’t it feel incredible to own the home you returned to instead of living in the barracks?

With the VA home loan program, active Navy personnel and veterans can take advantage of the easiest way to own a home. This program offers special privileges not available to the standard home buyer.

Check Your Eligibility For a VA Loan

These special benefits break down homeownership barriers that home shoppers commonly face.

Lower Interest Rates

VA loans typically offer lower rates compared to other loan types.

VA home loans are government-backed. This allows mortgage lenders to offer these loans at drastically reduced rates. Service persons and veterans can achieve homeownership at an incredibly affordable cost — sometimes less than what they are paying in rent.

Zero Down Payment

With a VA loan you can finance up to one hundred percent of the purchase price. This opportunity doesn’t come around often for home buyers with no military experience. Most standard loan programs require at least 3% down. The VA loan saves the buyer thousands in upfront costs.

No Mortgage Insurance

Mortgage insurance is typically required whenever a home buyer puts less than 20% down. Not so with VA loans. The VA home loan guaranty program backs these loans, essentially providing mortgage insurance at no cost to you.

Flexible Credit Score Requirements

Another important aspect veterans should look into when getting a VA loan is the more lenient credit score requirement compared to other loan types.

Some lenders offer VA loans down to 620 or lower. Again, strong government backing allows lenders to approve applicants who normally wouldn’t qualify.

Find out if you qualify for a VA loan today.

In addition, another benefit that the VA loan can offer to veterans and active duty members is the security of knowing that if there is ever a financial hardship the VA can help and will work with the borrower in making the payments feasible.

And last, but certainly not least, the VA loan provides access for veterans to receive lower closing costs.

The savings can help military home buyers who need to furnish their homes, do remodeling, or just need additional money to relocate their family and belongings.

Don’t delay. Through the support of a VA loan, veterans and servicemen of the Navy can have the pleasure in owning a home as quickly as they are at taking to sea.

Click Here To Check Today’s VA Loan Rates

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Should You Use A Real Estate Agent On A VA Loan?

Real estate agents, also called buyer’s agents when buying a home, are professionals who bring plenty to the table. But many home buyers opt to forego using a buyer’s agent, instead opting to go through the whole process on their own.

Each home buying situation is different, so it makes sense for some buyers to use an agent and for others to skip it entirely. But when using a VA loan, what are the pros and cons of using a real estate agent?

Here are some of the reasons you should consider hiring a buyer’s agent – or choosing to shop without one.

Click to check current VA rates.

Real estate agents and fees

Buyer’s agents and seller’s agents usually split the commission on the home, and the home seller covers it. This means that, traditionally, the home buyer never has to pay for the agent.

In a perfect world for home buyers, this would always be the case – but it isn’t always.

With VA loans, veterans have a little bit of added protection. The VA requires that any fees or commissions charged by buyer’s agents cannot be covered by the veteran/home buyer. That means that even if the homeowner doesn’t want to cover the cost, the veteran home buyer has no option but to avoid paying the fee.

If the buyer’s agent fee is a point of contention that’s slowing down the whole home buying process, then there are ways to get around this. However, it’s usually easier for both sides of the homeowner covers these costs.

So, if you’re using a VA loan, you will likely avoid having to pay for any of the real estate agent’s services.

What do real estate agents bring to the table?

Even without fees, home buyers may be wondering what the benefits of hiring a real estate agent are. After all, you’ll be involving another person in the entire process.

The most important thing a real estate agent brings to the table is experience – especially if they’ve worked with VA home buyers before. VA loans can be trickier than other loans, and not all agents have experience with them. If you’re using a VA loan, it’s best to find an agent with VA experience. This can speed up the home process and help you find the right home with the least amount of trouble.

Real estate agents also have local knowledge. They know what neighborhoods are growing in popularity and value, and they know which areas are best to avoid. Nobody understands the local housing market quite like them, making them valuable if you’re moving from a different city or state.

After you’ve found the right home, real estate agents will help you make the right offer and negotiate the deal. They probably know some or all of the people involved in the purchase, and those connections can make the entire process smoother.

Check current VA rates.

What is the downside of using a real estate agent?

If there were only upsides to using a real estate agent with a VA loan, then every home buyer would use them. But that’s not the case, and for some veteran home buyers, the reasoning makes sense.

Real estate agents are individuals with their own personality and way of going about things. While the right agent could make things go smoother, the wrong agent can slow things down, and you might end up clashing with them throughout the process.

Before hiring an agent, make sure that you work well with them. They’re going to be there throughout the entire process, and that can take longer than you’re expecting.

Home buyers with experience purchasing homes may find that it’s easier to go through the entire process without an agent. However, for first time VA home buyers, a real estate agent with VA experience should be strongly considered.

Click to begin the VA home buying process.

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What Properties Can You Buy With A VA Loan?

Some home buyers assume the only thing you can buy with a mortgage is a regular house. But some homes are far from ordinary, and other homes that seem ordinary may not be.

Just like all other loan programs, VA loans have specific stipulations on what you can and cannot buy. Some of these stipulations could put your dreams of getting that new home on hold.

Here’s a breakdown of what types of homes and properties you can and cannot buy with a VA loan.

Check today’s VA rates.

Can I buy any regular home with a VA loan, regardless of cost?

If by “regular” home you mean a single-family house, townhouse or apartment, then yes. As far as cost goes, there’s no limit to the cost of the home you can buy. Technically speaking, there’s no maximum amount you can take out with a VA loan.

As of January 1, 2020, VA-eligible borrowers can get any size loan with no down payment. There are no official limits. But remember, you’ll still have to qualify for the mortgage.

So, if you are buying an eligible home, you can definitely use a VA loan.

Click to check your VA loan eligibility.

Can I buy an apartment building with a VA loan?

Yes – but with a technicality.

VA loans are meant to give VA members the chance to afford a home to live in. With your loan, you can purchase a property that has up to four units. To be eligible, you’re going to have to permanently reside in one of the units. This is fairly standard with other mortgage types, such as FHA loans.

You don’t have to live in the building the entire time you own it, though. Once you pay off your VA loan, you’ll now own a four-unit building that you can rent out for additional income.

Can I buy a vacation house with a VA loan?

Because VA loans are meant for buying a home to live in, you cannot buy a vacation home. In fact, you cannot buy any type of second home in general with the VA loan, and you cannot have two VA loans out at the same time.

Can I buy foreign property with a VA loan?

Even if you’re planning on permanently moving into a home in a different country, VA loans will not cover foreign property. You need to purchase a home in designated spots in the United States, which for most VA home buyers is no problem at all.

Can I buy a mobile home with a VA loan?

Technically, you’re able to buy a mobile home and the property you put it on with a VA loan. However, these mortgages are incredibly tricky, and you’ll have a difficult time finding a lender that’s willing to approve you for this.

That being said, these programs are available with a few VA lenders. If you are looking for this type of loan, the best thing to do is get in touch with multiple lenders.

Click to get connected with VA lenders.

Can I buy an investment property with a VA loan?

VA loans can’t be used to purchase an investment property. That being said, you can always purchase a home with a VA loan and pay the loan off. After that, the house is officially yours and you can do whatever you want with it — including renting it out.

You also can’t flip homes with a VA loan. The goal of the program is to offer special home buying benefits to veterans. These benefits are better than any other program, and lenders don’t want you taking advantage of the program.

While it might seem like you don’t have many options when it comes to purchasing a home, most houses in the nation are VA eligible. Home buyers looking to purchase a new home to live in can certainly take advantage of the VA loan and all its benefits.

Check today’s VA rates.

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Tips to Pass a VA Appraisal

Whether you’re looking to buy a home with a VA loan or refinance through the VA, you’re going to have to use a VA appraisal.

An appraisal is when lenders send an appraiser to evaluate your home and assess the condition. Keep in mind this is not as thorough as a home inspection, but it is necessary to get an appraisal if you want a VA loan.

Unfortunately, VA appraisals aren’t the same as they are if you’re purchasing a home with a conventional loan. The VA is backing the home, so they want it to be in good condition before they approve any type of loan. This makes most VA appraisals tougher to pass, and it can slow down the process of buying a home.

But with proper planning, your appraisal will go off without hitch. Here are some tips to make sure your appraisal goes as planned.

Click to see today’s VA rates.

Get connected with a real estate agent

Whether you’re getting a VA loan or refinance, find a real estate agent with VA experience. They’ll help you prepare for the VA appraisal, as well as everything else along the way.

Keep in mind that just because a real estate agent is VA certified doesn’t mean they will be helpful. Find an agent that has experience with VA loans.

Click to get connected to multiple lenders.

Check the MPRs

The VA has minimum property requirements (MPRs) every home needs to meet before it will be Va approved.

According to the VA, the appraiser is going to focus on the three S’s: safety, sanitation and structural integrity.

A home that meets the MPRs should have a working heating system, a safe water quality, a safe and structurally sound roof, no pest or mold problems, and a safe electrical system. Your real estate agent can help you with everything as well.

If you’re purchasing a home, these will need to be addressed before the sale can be completed. While the costs of this can be negotiated before the closing, the entire process can take a lot of time, and there’s no guarantee the necessary repairs will be included.

Your best bet is to find a home that’s move-in ready or requires few fixes. This speeds up the entire process and makes it easier to ace the VA appraisal.

Check your home

If you’re going for a VA refinance, the next thing you should do is inspect your own home. If your home has a broken hot water heater, a busted water pipe or anything of the like, you’ll want to get the fixed first. The appraiser will notice these, and they’ll require a fix before the refinance can be accepted.

Click to see today’s VA rates.

Don’t put off everything until the last minute

A VA appraisal typically takes one or two weeks to be completed. However, you should always be prepared for the worst case scenario.

In the event a VA appraisal takes much longer to turn around – or repairs have to be made – the closing date can be pushed much further back. This doesn’t happen all the time, but it’s worth keeping in mind.

Get a home inspection

While the appraiser is going to evaluate your home to meet the VA’s needs, they won’t do a full-blown inspection. After the appraisal is done but before you purchase a home, be sure to get a home inspection. This is going to give you a much clearer idea of how much work the home might need in the future.

You’re one step closer to the home of your dreams

The VA appraisal is required for both VA loans and refinances, but it doesn’t have to be as stressful as it seems. If you’ve done your research correctly, then the VA appraisal should go as smooth as possible.

Keep in mind you will have to pay for the VA appraisal yourself, and this cost can vary state by state. Fortunately, the VA has made the information readily available to home buyers and homeowners.

After finishing up with the VA appraisal, you’ll be one big step closer to getting a VA mortgage or refinance.

Click to check current refinance rates.

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What To Do If A VA Appraisal Comes In Low

One of the biggest hurdles VA home buyers must clear is the VA appraisal. VA appraisals are much like regular appraisals — an appraiser will come out to the house you’re looking to buy and establish its value.

The main difference is the VA has stricter guidelines when it comes to houses. The VA guarantees loans, so they want to make sure the house meets their standards.

Unfortunately, VA appraisals can work against the home sale. If a VA appraisal comes in low, problems can occur.

For example, a home on the market for $275,000 can get a VA offer with all $275,000 financed. But if the VA appraisal says the home is only worth $265,000, then suddenly the VA will only finance up to $265,000. This means the VA home buyer needs to make up the $10,000 difference.

What options do VA home buyers have when this occurs?

Click to check today’s VA rates.

Getting a reconsideration of value

If a VA appraisal comes in low, a reconsideration of value (ROV) could be the best option.

An ROV is when the VA reevaluates how much the home is actually worth. Depending on how it goes, it could completely change the VA appraisal.

One way to get an ROV is to find better comps. Comps are similar homes to the one that’s being bought. If you can find comps closer to your expected price range, the VA may reevaluate their decision. For example, a similar home with no view may be valued the same as the home you’re buying. But that view has a value, and you can make the argument the home should be valued higher.

There’s also always the chance the appraiser made an error, or they missed something when appraising the house. If this is the case, then a second appraisal could shift things in the buyer’s favor.

What to do if a reconsideration of value doesn’t work

While they help some VA buyers, ROVs don’t always work out. If the appraisal is still too low, there are other ways to avoid paying huge costs to make up the difference.

One of the most common ways VA home buyers get around a low appraisal is by getting the seller to lower the price. Some homes are overvalued, and a low VA appraisal should be a wake-up call to the current homeowner that their home might not be worth what they think. They could then lower the asking price to the same value as the appraisal, clearing the way for the VA loan to go through.

Another possibility is that you, the home buyer, covers the additional costs. There’s a good chance you’ll have to cover the costs from out of pocket, meaning cash, if the downpayment is too low or if no downpayment is being paid at all.

Then there’s the compromise between buyer and seller to split the additional costs equally. So, in our scenario where an additional $10,000 is owed, the seller would reduce the cost of the home by $5,000 and the buyer would make up the additional $5,000.

Along with these options, there are other ways to reduce the cost of the home. It’s common for home sellers to include appliances and/or furniture with the sale, including the costs in the total price. Unfortunately, VA appraisers won’t include this – their job is to evaluate the value of the home without including anything in it. Choosing to let the buyer keep the appliances can lower the total cost of the loan without changing the value of the house.

If there’s no way around the low VA appraisal, then you should always be prepared to walk away from the deal. VA appraisers are professionals, and they have to be certified by the VA to evaluate homes. If sellers are unwilling to budge or if a new deal can’t be figured out, then it could be in the buyer’s best interest to find a different house. It’s not the happiest of endings, but it could be worth avoiding large, out-of-pocket payments just to get the specific home.

Check today’s rates.

How to avoid VA appraisal issues

VA appraisals aren’t as complicated at they may seem. There are early signs home buyers can find to tell if a home will clear an appraisal or not. Click here to find out more about how to avoid VA appraisal issues.

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