VA Loans in Las Vegas
What is a VA loan?
A VA loan is designed specifically for veterans. The Department of Veterans Affairs guarantee these loans, which means they are not the lender. This is similar to an FHA loan, which insures FHA loans. This loan is made to make it easier for a veteran to obtain a mortgage. This loan is designed for veterans who do not have the funds for a big down payment. Keep in mind, there are certain eligibility requirements for this loan. If you do qualify, it is considerably easier than other loans such as, Conventional, FHA, etc.
You heard that right! Your loan will be easier to qualify for than other loans. Another great thing about this loan, you do not have to come up with any down payment. You can and will borrow 100% of the purchase price. If it couldn’t get any better, you also do not have to pay for mortgage insurance. Conventional and FHA loans both require a monthly mortgage insurance premium, but with this loan you do not have to pay any. For example, if you were to get a Conventional loan with a purchase price of $300,000 you would have to bring in $60,000 plus closing costs to receive no mortgage insurance. With your loan, you do not have to bring in a down payment or have a monthly mortgage insurance premium. If you think a VA loan sounds like the right fit, contact your Las Vegas Mortgage Broker today to help you get qualified!
Who is eligible for a VA loan?
When you want to qualify for a VA loan, there are many factors to consider. The Department of Veterans Affairs are particular when deciding if you are eligible.
Below are a few qualifiers for this loan:
Keep in mind, there are some date requirements when qualifying for this loan. If you an active-duty military personnel you can qualify after six months of service. If you are a Reservist or a member of the National Guard, you will have to wait six years. The only exception to this is if you are called to active duty before the six years. In that case, you will have to wait 181 days after.
As for loan requirements, you do not have to have much to qualify for this loan. These loans are typically designed to help all veterans get a mortgage loan. You do not need a minimum credit score or a down payment. You are more than welcome to put a down payment, so your monthly payment will be lower. You do want to have a good credit score, so you can get a better rate. It would be ideal to have your credit score over a 620. Although, these loans are known for having better rates than the other loans offered. Get in touch with your Las Vegas Mortgage Broker today to see if you qualify and what the rates are like!
Costs for a VA loan
A VA loan has some costs and fees that other loans do not have. This cost is called a Funding Fee. A funding fee on your loan will be based off of your loan amount and if you decide to have a down payment. The good thing is, it is a one-time fee. For example, say you are in the armed forces and your loan amount is $200,000. You would be paying 2.15 percent of the $200,000 as your funding fee. Your total fee would be $4,300. If you decided to put 10 percent down on your purchase price, that would be $20,000 then your percentage for your funding fee would drop down to 1.25 percent. Your total fee after the down payment would be $2,250. Keep in mind, the 1.25 percent is from your loan amount. After the 10 percent is deducted, you then calculate the 1.25 percent. Although you have to pay a funding fee, you can include it in your loan amount! Which means, you do not have to pay it upfront.
One of the biggest advantages of your VA loan, there is no mortgage insurance required. Mortgage insurance is required on an FHA loan and a Conventional loan, unless you put more than 20 percent down for Conventional. This payment could range from $100 to $300 per month based off of your credit score. With an FHA loan, you have to pay an upfront mortgage insurance premium and then monthly as well. Your costs with this loan will be less than an FHA or a Conventional. If you are a Veteran, this loan is definitely for you! Contact your Las Vegas Mortgage Broker today for more details.
Understanding your payment
Your payment and the closing costs are the most important factors when getting a mortgage. So, you want to make sure you always understand where your costs and how your payment is calculated. Your payment will be broken down into different sections and will all be put together to make your monthly payment.
Here is how it is broken down:
Principal and interest will be based on your loan amount and your rate. This will be your base mortgage payment, without the items in escrow. Escrow is with your title company. You will be paying them monthly so they can pay your hazard insurance premium and your taxes yearly. Your hazard insurance is an annual premium that you or your Las Vegas Mortgage Broker will provide. Depending on the size of the home and how much you are buying it for, that will determine what your annual premium will be. Now, with your taxes, this is determined by the Clark County. Your annual taxes will be listed on their website and this will determine your monthly payment to escrow. Your HOA payment will not be made to escrow. This payment will be a separate payment that your HOA will provide. Below is an example of a VA loan and it’s costs and payment.
Total monthly payment would be $1,896.46.
If you have any questions on a VA loan and would like to apply, please contact your Las Vegas Mortgage Broker today to get started!