800-720-0250
VA Home Improvement Loans

VA Home Improvement Loans

VA Home Improvement Loans

The VA home loan program was designed to make purchasing a home more accessible for active duty service members, veterans, and surviving spouses. The program offers money-saving benefits to those who qualify with the goal of making homeownership within reach for those who might not otherwise be able to access it. In this article, let’s look at some facts about VA Home Improvement Loans.

In addition to helpful benefits like no required down payment, no monthly mortgage insurance and options for people with lower credit scores, the VA home loan program also allows you to renovate your existing home or purchase a fixer upper and finance the cost of the renovations. These options are possible with a VA home improvement loan. 

There are multiple VA home improvement loan options for those who qualify through VA cash out refinances. When looking to renovate your current home or purchase a fixer upper as your next home, HomePromise can help you navigate these complex financial decisions. Call HomePromise at 800-720-0250 to receive a free quote that details your accessibility to a VA home improvement loan. 

100% VA Home Improvement Loans

When getting a VA home loan to purchase a home, sometimes the home has improvements that you’ll want to do after closing.  Maybe you want to upgrade your kitchen or bathrooms.  Maybe you want new carpets or a new roof.  All of these items may be possible through a VA cash out refinance if your home has increased in value after closing.

Alternately you may have lived in your home for years and need an addition for a larger family size or want to do upgrades, alterations and repairs.  The VA cash out refinance is the ideal way to get these home improvements done.  Instead, if you choose a home equity line of credit (often called a HELOC) you may experience some risk of big increases in mortgage rates because most HELOCs have adjustable rates.  Sometimes HELOC rates can rise above 20% so a fixed rate VA cash out loan is safer.

The key in doing VA cash out refinances for home improvement is to make sure you work with one of the few lenders that allow for 100% cash out refinances.  A VA cash out refinance for most lenders is limited to 90% of the value of your home which limits the amount of work you can do to improve your home. 

At HomePromise, our maximum loan is 100% of the value of your home for a cash out refinance.  Call our VA lending experts to find out if you qualify for a 100% cash out refinance at 800-720-0250.

VA Cash Out Home Improvement Loan Requirements

In order to qualify for a VA cash out refinance to do home improvements, service members must meet the standard VA home loan requirements for service and provide their Certificate of Eligibility. If you do not currently have your Certificate of Eligibility (COE), call HomePromise at 800-720-0250 to talk to a VA expert who can get your COE for you. 

The below chart details the service requirements that must be met in order to qualify for the VA home loan program: 

Type of Service Active Service During Peacetime Active Service During Wartime National Guard
Length of Service Served for 181 days Served for 90 consecutive days Served for 6 or more years

When applying for a VA home improvement loan, you must also meet the credit score requirements of your lender. The VA loan program does allow for options for veterans and active duty service members with lower credit scores, but credit score requirements do vary from lender to lender. If you’re wondering what your credit score is and the mortgage you maybe be able to obtain with it, call HomePromise at 800-720-0250 to speak with our mortgage experts. 

In addition to meeting the service requirements for the VA loan program and the credit requirements of your lender, the repairs to your home must also meet specific VA standards.  Your home can’t be dilapidated or need repairs that affect the health and safety of the home. Those repairs have to be completed before closing.  But you can draw cash out of the home at closing to pay contractors or pay off debts you may have accumulated by paying for needed repairs. 

Minimum property requirements must be met to qualify for a VA cash out refinance.

Understanding Minimum Property Requirements

Minimum property requirements (MPRs) were put in place to protect the value of the home itself and the health and safety of the buyer by identifying immediate threats present in the home. MPRs ensure that the property is move-in ready and meets the basic living needs a home should provide. MPRs are designed to identify a variety of issues that could affect the safety of the home as well as its value.

The below chart lists some of the minimum property requirements as determined by the Department of Veterans Affairs: 

VA Home Improvement Loan Minimum Property Requirements

The home must:

 

  • Have a sewage disposal system that is sanitary and safe
  • Have a water supply that is clean and continually available
  • Have a proper roof that will continue providing shelter into the near future
  • Have electrical, heating, and cooling systems that are properly functioning
  • Be large enough in size to cover basic living needs
  • Be free of peeling lead-based paint
  • Not have any fungus, dry rot, or wood-eating insects like termites
  • Be accessible year-round from either a public or private road
  • Have crawl spaces or attics that are properly vented and maintained to be accessible when needed

The above listed minimum home requirements are the basic necessities a home should provide. Having these requirement before purchasing or refinancing a home protects veterans, active service members, and their families from the added stress of purchasing a non-functioning home. It also helps protect lenders and the VA home loan program as a whole so it remains healthy for many generations to come.

A VA cash out refinance can work as a VA rehab loan if your home needs significant work to be done but the home must meet minimum property standards by the time you close on your loan.  The VA cash out refinance can act as a home equity loan tapping the equity in your home with a new first mortgage for repairs and improvements.  Note that the home has to be your primary residence to qualify for a VA cash out refinance for home improvements.

VA Home Appraisal

A VA home appraisal confirms that all of the minimum property requirements are present in the home. The VA home appraisal must be completed by a qualified, independent VA home appraiser. The VA home appraisal is a different service than the home inspection.  The appraiser is selected by the US Department of Veterans Affairs on each VA loan.

A home inspection is a thorough investigation of the home to help make buyers aware of any potential issues with the home. It’s a more in-depth review of the home that’s very important for protecting home buyers. A VA appraisal does not replace the need for a home inspection. 

Home Improvement Loans for Disabled Veterans

Disabled veterans who need to remodel their current home in order to make it accessible for themselves are eligible for special housing grants that help cover the cost of these expensive renovations. 

There are a variety of benefits disabled veterans receive when obtaining a VA home loan. In addition to these benefits, disabled veterans may also qualify for specific grants that help cover the cost of making accessibility modifications to the home. There are two grants available for disabled veterans with a 100% service-connected disability rating from the VA: the Special Housing Adaptation (SHA) and the Specially Adapted Housing (SAH) grant. 

If you are a disabled veteran who does not qualify for either of these grants, a VA cash out refinance might be a great option for helping cover the cost of accessibility renovations to your home. To learn more about your options, call HomePromise at 800-720-0250 for a free quote. We will take the time to understand your unique circumstances, listen to your needs, and answer any questions you might have

More Details About VA Cash Out Home Improvement Loans

With a VA cash out refinance you can use the money for any purpose, like home improvements and renovations of your choosing. With a VA cash out refinance, your maximum loan amount with most VA lenders is 90% of your home’s current value. But, at HomePromise we allow you to tap 100% of the value of your home as a veteran or active duty member.

A VA cash out refinance works by tapping into the equity you’ve earned and built over time in your home. In order to be able to take advantage of a VA cash out refinance, you must owe less money on your mortgage than what your home is worth. In other words you can’t be “upside down” on your mortgage meaning that your mortgage can’t be more than the value of your home.

The money available to those who qualify for a VA cash out refinance can be used for a variety of purposes. The Department of Veteran Affairs does not regulate or set rules on what the cash out money can be used for. The money from a VA cash out refinance could be used to pay off high-interest credit card debt, finance a wedding, pay for college or put an addition on your home. 

Discovering the untapped potential of the equity you’ve earned in your home can be exciting. As you’re choosing how to spend this money, keep in mind that the money you’re pulling out from your home’s equity will be refinanced into your mortgage. This means that you will be paying for it in the higher loan amount of your mortgage after the refinance is complete. 

Here is an example of the numbers behind a potential VA cash out refinance scenario: 

Total Amount Remaining on the Mortgage Appraised Value of the Home Equity Available Through a VA Cash Out Refinance
$180,000 $235,000 $55,000

Note that in the scenario above you have to pay the VA funding fee and any closing costs out of the $55,000 available through a cash out refinance.  Lower closing costs help you keep as much of that $55,000 for yourself.

A great way to keep your closing costs low is through the HomePromise reduced origination fee of $590.  Many VA lenders charge 1% of the loan amount as an origination fee.  That would be $3,000 on a loan amount of $300,000.  HomePromise charges only $590 regardless of the loan amount.

Discuss Your VA Home Improvement Loan with HomePromise

HomePromise is an approved lender with the U.S. Department of Veterans Affairs for providing VA home loans. We proudly offer convenient methods for applying for VA home loans, including online and over the phone.

To learn more about the ways you can take advantage of your home’s equity, call HomePromise at 800-720-0250. As a VA approved lender we will help you understand your options and provide you with a free interest rate quote

VA Debt Consolidation Loans & Military Debt Consolidation

VA Debt Consolidation Loans & Military Debt Consolidation

Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help. Read more…

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Can a Reservist Get a VA Loan?

Can a Reservist Get a VA Loan?

Can a Reservist Get a VA Loan?

The VA loan program provides helpful and unique benefits for active service members, veterans, and their families. But, can a Reservist Get a VA Loan? As long as they meet specific requirements, Reservists and National Guard members are able to apply for the VA loan program and receive all of the benefits offered by the program. 

There are many current and former members of the National Guard or Army Reserve who don’t know that they can also qualify for VA loans and all its benefits. If you’re a Reservist considering your VA loan options, call HomePromise to speak with one of our experts at 800-720-0250.

Requirements for Reservists and National Guard Members to Apply for VA Home Loans

You might be asking yourself, can I get a VA loan as a Reservist? The answer may be yes, but you must meet specific service requirements in order to qualify. In order to be eligible for a VA home loan, Reservists and National Guard members must have completed at least 6 years of honorable service, been honorably discharged for a service-related disability, or been called for active duty service for at least 90 consecutive days.

The below chart describes the requirements Reservists and National Guard members must meet when applying for VA loans:

VA Loan Eligibility Requirements for Reservists and National Guard Members
  • Completed 6 years of honorable service
  • Called for active duty service for 90 consecutive days
  • Honorably discharged for a disability connected to your service

How Does a Reservist Go About Getting a VA Loan?

As a Reservist or National Guard member, in order to apply for a VA loan you will need to present your Certificate of Eligibility. When applying for a VA home loan, this is the most common form of documentation that we will require from you in order to proceed with the loan.

If you need to apply for your Certificate of Eligibility, as a VA approved lender HomePromise has authority from the Department of Veterans Affairs’ to get your Certificate of Eligibility for you. We provide you with a Form 26-1880 and then we are able to get your Certificate of Eligibility (“COE”) online.  In many cases we can get your COE instantly.

In addition to providing your Certificate of Eligibility, our HomePromise VA home loan experts will also review your credit score and income sources when determining your eligibility. Call HomePromise at 800-720-0520 to receive your free quote!

VA Loan Benefits Available for Reservists and National Guard Members

The VA loan program provides a variety of VA home loan benefits to veterans and their families who qualify. These benefits include no required down payments, no monthly private mortgage insurance (PMI), competitive interest rates, limits on closing costs, and options for approval of loan applications with lower credit scores. The VA home loan benefits can help veterans and their families who qualify save thousands of dollars when buying or refinancing their home. VA home loan benefits are lifetime benefits so you can use them many times.

Many consider the biggest benefit of the VA home loan program is not having to pay for a down payment on your home. Most people who are not veterans need to save for many years before they have enough money to cover the down payment on a home. Minimum down payment requirements for civilians range from 3.5% to as much as 5%, adding up to thousands of dollars due at closing.

The VA home loan program does not require down payments, saving you the stress of having to pay thousands of dollars when purchasing your home.

The Department of Veterans Affairs does not set credit score requirements in order for service members, veterans, and their families to qualify for a VA home loan. If you have a lower credit score, this means that you may still qualify for a mortgage and receive competitive interest rates. The below chart lists various credit scores and whether they are commonly considered poor, fair, good, or great:

Rating Credit Score Ranges
Poor 300-579
Fair 580-659
Good 660-719
Great 720-799
Fantastic 800-850

If you have what’s considered a fair, or even good credit score, the VA home loan program may still offer you more competitive interest rates than you would receive otherwise. VA interest rates are typically up to 1% better than regular interest rates on mortgages. Over the life of your loan, this can save you thousands, if not tens of thousands, of dollars. Lower interest rates mean more savings.

Another money-saving benefit of the VA loan program is the exemption from paying private mortgage insurance, commonly referred to as PMI which is paid monthly. Buyers who obtain a conventional mortgage are required to have PMI unless they make a huge down payment of 20% of the sales price of their home.  This monthly payment protects lenders in case the homeowner defaults on their mortgage.

Through the VA home loan program, borrowers do not have to obtain and pay for monthly PMI. This can also help service members, veterans, and their families save thousands of dollars over the life of their loan. Not having to pay PMI when obtaining a mortgage gives you more buying power when buying a home or refinancing your existing home.

VA Funding Fee for Reservists

When applying for a VA loan and taking advantage of all of the benefits they provide, Reservists are not exempt from paying the VA funding fee. The VA funding fee is a one-time fee that is added to the cost of your VA loan and is typically paid at closing.

The VA funding fee is a one-time payment added onto the cost of the VA loan paid by the service member, veteran, or surviving spouse. The purpose of adding this fee to VA loans is to help cover any losses from defaulted loans. It also makes sure the program stays healthy and is still available for service members and their families in the future.

Receive a Free Quote for a VA Home Loan from HomePromise

HomePromise is here to help you with all of your VA home loan needs! We are proud to offer service members and their families some of the most competitive VA loan origination fees in the country on top of our flexible and knowledgeable service from VA home loan experts.

We offer military members and their families the option to apply online or over-the-phone. HomePromise is a lender approved with the U.S. Department of Veterans Affairs to provide VA home loans.

Call HomePromise at 800-720-0250 to learn what benefits are available to you through the VA loan program! We consider the unique circumstances of each veteran and their families when determining eligibility for VA home loans. 

VA Debt Consolidation Loans & Military Debt Consolidation

VA Debt Consolidation Loans & Military Debt Consolidation

Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help. Read more…

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What is the VA Loan Origination Fee?

What is the VA Loan Origination Fee?

What is the VA Loan Origination Fee?

Before borrowing for your mortgage, it’s important to understand origination fees. Choosing a lender to fund your VA home purchase loan or cash out refinance is a major decision that will impact how much money you will have to pay at closing. In this article, we will answer the question, What is the VA Loan Origination Fee?

When considering different mortgage lenders, one important factor to be aware of is what fees they will charge you. One of the fees mortgage lenders will charge you is the VA loan origination fee. A general description of loan origination fees will help you fully understand what they are and how they impact the cost of financing your VA home loan.

For any remaining questions on origination fees, call our VA loan experts at 800-720-0250. We will be able to review your application and quickly provide you with a free quote.

What is the VA Loan Origination Fee?

When obtaining a VA home loan, the loan origination fee is what the lender charges you in order to process your loan. It’s the fee you pay for the mortgage company to originate, or set up, your loan. Origination fees cover the wide range of costs mortgage lenders have when processing your loan. This includes the cost of underwriting your loan, scheduling appointments, collecting all of the necessary paperwork, and processing your application. Loan processing costs include verifying your employment, income, and assets.

The VA loan origination fee on a VA home loan is one way the lender makes money. The other way they earn money is by servicing your loan, including collecting your monthly payment and handling the escrow account. You will be required to pay the VA home loan origination fee at closing.

The VA loan origination fee is different from the VA funding fee.  Veterans have to pay the funding fee to the US Department of Veterans Affairs while the origination fee is paid to an approved VA lender.  The VA funding fee is charged on all VA loans by the Veterans Administration unless you are exempt.

The VA Funding Fee amount is smaller if you are doing an Interest Rate Reduction Refinance Loan (IRRRL).  One way to be exempt from the funding fee if you have a service connected disability.  This can save you thousands of dollars at closing because the funding fee is a percentage of the loan amount and can range from .5% to 3.6%.  Call our VA loan experts today 800-720-0250 for more information about the VA funding fee.

How Are VA Loan Origination Fees Calculated?

The VA loan origination fee is set by each individual VA mortgage lender. The Veterans Administration does not decide on the amount of the origination fee.  The amount is not regulated by the government. Each mortgage lender determines the loan origination fees they would like to charge in order to cover their operational costs of processing your loan.

The amount VA mortgage lenders charge varies significantly from lender to lender.  Some lenders have high salaries and expensive offices that may have a big impact on their origination fee amounts.

Understanding how loan origination fees from more expensive lenders can cost you more money is important to help you make the best decision for yourself.   Many veterans think they can’t save money on their origination fee but that’s not true.  Loan origination fees may be called by many different names.

Some VA lenders may charge a loan processing fee, underwriting fee, commitment fee, tax service fee, lock-in fee, application fee or many other types of fees.  The size of these fees matter if you are a veteran doing a VA refinance because usually these fees come out of your home equity at closing.  This means that bigger lender origination fees leave you with less equity in your home after closing.

The Cost of a VA Loan Origination Fee at HomePromise

At HomePromise, we proudly offer service members, veterans, and their families’ one of the most competitive VA loan origination fees in the country. Our HomePromise VA loan origination fee is only $590, no matter the type of loan or the total loan amount. To speak with our HomePromise experts about applying for a VA loan with a small origination fee, call us at 800-720-0250 to receive a free quote.

With a better understanding of VA loan origination fees, you can avoid being overcharged for your origination fee. Many lenders charge loan origination fees of over $1,000. Some mortgage lenders charge even higher amounts, such as 1% of the total loan amount. This adds a significant amount to your closing costs. Take a look at the huge difference the origination fee can make on your closing costs below:

Loan

 

Amount

HomePromise Origination Fee Other Lenders 1% Origination Fee Savings with HomePromise
$250,000 $590.00 $2.500.00 $1,910.00
$500,000 $590.00 $5,000.00 $4,410.00
$750,000 $590.00 $7,500.00 $6.910.00
$1,000,000 $590.00 $10,000.00 $9.410.00

When is the Loan Origination Fee Paid?

The loan origination fee is usually paid at closing as part of your closing costs. But some lenders require part of the Origination Fee at the time of loan application in the form of an application fee or commitment fee.  These fees are charged by some lenders even if your loan does not close.  Lenders like HomePromise don’t charge application fees or commitment fees.  You should always ask your lender what fees they charge and when they charge them.

Other closing costs can also include appraisal fees, title insurance, the VA funding fee, credit report changes, taxes, and surveys. Budgeting for the cost of your VA home loan origination fee is an important part of the home buying process.  A VA home loan expert at HomePromise can help you estimate your costs so you can feel safe buying a home without the risk of big jump in costs at the last minute.  Please call 800-720-0250 for more information.

Home buyers do have the option of asking the seller to cover the cost of their VA home loan origination fee. This is one way of decreasing your closing costs and avoiding an origination fee without increasing your interest rate. However, this must be negotiated and decided before your offer is made on a home.

Conclusion

Understanding VA loan origination fees can help you make an informed decision when choosing a mortgage lender, and it can also help save you money. When you’re ready to move forward with financing the purchase of your new home or doing a cash out refinance, turn to HomePromise as your mortgage lender. We offer military service members and veterans very competitive loan origination fees. Our VA loan origination fee is a flat $590, no matter the total loan amount.

HomePromise is approved with the U.S. Department of Veterans Affairs to provide VA home loans, whether for home buyers or existing homeowners who want to refinance. Our mission as a flexible and compassionate lender involves providing military service members with options that help save them money. We are here to help you make these important financial decisions with confidence.

HomePromise provides veterans and active duty service members with open communication over-the-phone about mortgage rates and discount points or any other questions about VA loans. Through HomePromise, you also have the option to apply online. Our VA loan experts will review your income sources, credit history, homeowner’s insurance costs and credit score to determine if you qualify for a VA loan. They will also answer any questions you may have and provide you with a free quote. Call us at 800-720-0250 to speak with one of our experts today. 

How Much is the VA Funding Fee

How Much is the VA Funding Fee?

This type of fee is a one-time payment added onto the cost of the VA loan paid by the service member, veteran, or surviving spouse. The purpose of adding this fee to VA loans is to help cover any losses from defaulted loans. It also makes sure the program stays healthy and is still available for service members and their families in the future. Learn more 

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How Much is the VA Funding Fee?

How Much is the VA Funding Fee?

How Much is the VA Funding Fee?

Through the VA home loan, veterans, service members, and their spouses are eligible for a variety of useful benefits. What keeps the VA home loan and its benefits continuing year after year are the payments made from the VA funding fee. In this article, we will look at how much the VA finding fee is.

Figuring out how much you may owe for this fee when getting a VA loan is a hard task to handle without a mortgage professional. When you navigate the home buying process as a veteran, service member, or spouse of a veteran who died in the service, our HomePromise experts are here to help guide you at 800-720-0250.

What is the VA Funding Fee?

This type of fee is a one-time payment added onto the cost of the VA loan paid by the service member, veteran, or surviving spouse. The purpose of adding this fee to VA loans is to help cover any losses from defaulted loans. It also makes sure the program stays healthy and is still available for service members and their families in the future.

How Much Will It Be? 

The cost of the VA funding fee varies based on the loan amount, if you’ve used the VA loan program before, and how much money you put down. It’s important to note that the VA funding fee is based on the total loan amount, not the purchase price of the home.

Buyers who are using the VA loan program for the first time pay a lower fee than returning users. The VA funding fee is calculated at 2.3% of the loan amount of your VA home loan. For buyers who have previously obtained a VA loan, the funding fee is 3.6%. This amount can be reduced at closing by putting at least 5% down when buying a home.

Below is a chart detailing how the VA funding fee is calculated when buying a home:

First-Time VA Loan User After First Use of the VA Loan Down Payment Amount
2.3% 3.6% Less than 5%, including no down payment
1.65% 1.65% 5% or more
1.4% 1.4% 10% or more

Understanding the fee percentage amounts is one thing, but understanding how they apply to the total loan amount for your home is another. Below is a chart with a few examples based on the VA loan amount:

Down Payment Amount $100,000 VA Loan Amount $200,000 VA Loan Amount $300,000 VA Loan Amount
First-time use Less than 5% $2,300 $4,600 $6,900
First-time use 5% or more $1,650 $3,300 $4,950
First-time use 10% or more $1,400 $2,800 $4,200
After first use Less than 5% $3,600 $7,200 $10,800
After first use 5% or more $1,650 $3,300 $4,950
After first use 10% or more $1,400 $2,800 $4,200

Understanding the VA funding fee and how it applies to your VA loans is a complicated and important topic that will impact your future mortgage payments. Our HomePromise professionals are expertly trained to calculate the fees relevant to your VA loan. Contact us today at 800-720-0520 to get a free quote, speak with a professional, and get all your questions answered.

How the Fee is Paid

Now that you understand your potential amount, the next question is: how do I pay the it?

If you’re required to pay this fee, the payment is due at closing. Your mortgage lender is responsible for collecting the payment from you and sending it directly to the U.S. Department of Veterans Affairs.

Veterans, service members, and surviving spouses have options when deciding how to pay for the funding fee. They can pay the fee out-of-pocket at their closing, finance the or ask the seller to pay for the fee on their behalf. It is most common to finance the fee by rolling it into the loan amount.  If you are asking the seller to cover your cost, this must be pre-determined when the offer on your home is accepted.

When applying for VA loans, you should know that the U.S. Department of Veterans Affairs determines who has to pay the funding fee.  Your VA Certificate of Eligibility who show whether you have to pay the VA funding fee or not.

VA Funding Fee Exemptions: Are Disabled Veterans Exempt?

When veterans get VA loans, they are eligible for a variety of benefits, including great interest rates, no money down, no monthly mortgage insurance, options for lower credit scores, and limits on closing costs. These VA home loan benefits are lifetime benefits.

In addition to these benefits, disabled veterans are eligible to receive even more VA benefits. These benefits include special housing grants, property tax exemptions, disability compensation benefits for veteran income, and exemption from the funding fee.

Disabled veterans, surviving spouses of veterans who passed away in action or from a service-related injury or illness, and active-duty service members who have received a Purple Heart are all exempt from the VA funding fee. Members who are currently receiving disability benefits are able to waive the VA funding fee regardless of their level of disability.

Looking at our chart for VA funding fee amounts, being able to waive the VA funding fee can help disabled veterans save thousands of dollars in closing costs when purchasing a home. If you recently loan closed before you started receiving disability benefits, you may still be eligible to have your VA funding fee returned to you if you were in the middle of applying for disability at the time.

In order to be eligible for VA loans and the benefits they provide, veterans must meet specific requirements. Veterans with disabilities arising from injuries sustained in the line of duty may be eligible for a VA loan without meeting all of the necessary requirements.

A Certificate of Eligibility, commonly referred to as COE, is the document required by lenders in order to waive the VA funding fee. Before applying for a VA loan where the VA funding fee is waived, the majority of veterans have to meet the following criteria:

National Guard Served more than 6 years
Active Service During Peacetime Served for 181 days
Active Service During Wartime Served for 90 consecutive days

Determining your eligibility for VA loans and waiving the VA funding fee can be difficult to determine. Through their extensive training, our HomePromise VA home loan professionals can walk you through these complicated matters. Contact our experts today at 800-720-0520 to get help and a free quote.

Conclusion

HomePromise is a flexible lender approved with the U.S. Department of Veterans Affairs to provide VA home loans. We provide flexible services to meet the needs of service members and veterans, including over-the-phone, in-person, and online. Our VA loan experts are here to guide you through the process of applying for VA loans.

When you call HomePromise, our VA home loan professionals will treat you with care and compassion as they answer all of your questions. We will review your income sources, credit score, and credit history to determine if you qualify for a VA loan. We will also help you determine the amount you owe for the VA funding fee, if any.

What is the VA Loan Origination Fee?

What is The VA Loan Origination Fee?

When considering different mortgage lenders, one important factor to be aware of is what fees they will charge you. One of the fees mortgage lenders will charge you is the VA loan origination fee. Read more

Call Us Now!
800-720-0250

 

Apply Online With Us Below

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Home Loans for Disabled Veterans

Home Loans for Disabled Veterans

Home Loans for Disabled Veterans

Understanding VA loans and the great benefits they offer disabled veterans is a hard subject matter to tackle alone. Seeing whether you qualify to waive the VA funding fee, how your disability compensation helps your income, and how you qualify for a VA home loan are some of the most commonly asked questions disabled veterans have when applying for a VA loan. Our HomePromise experts are professionally trained to help guide you through these important financial decisions. Home Loans for Disabled Veterans are possible with us.

What are the VA Home Loan Benefits for Disabled Veterans?

There are many VA home loan benefits available to veterans who qualify, including no money down, no monthly mortgage insurance, options for lower credit scores, limits on closing costs, and competitive interest rates. Many think that these VA home loan benefits are one-time benefits, but this is not true. These VA home loan benefits are benefits for life.

Disabled veterans are eligible to receive added VA home loan benefits on top of the ones already explained above. These benefits include property tax exemptions, disability compensation benefits for added income, special housing grants, and exemption from the VA funding fee.

Property Tax Exemptions for Disabled Veterans

Property tax exemptions can help disabled veterans reduce the amount of real estate taxes they owe each year. Looking further into your eligibility for property tax exemptions and credits may help save you thousands of dollars when purchasing a home.

Real estate tax laws can change, each state has different criteria for qualification, and the amount of benefits you receive is typically proportionate to your disabled status.

Real Estate tax laws are complicated, and it’s best to consult with a professional to review your eligibility for property tax exemptions. Our HomePromise professionals are expertly qualified to provide a thorough review of you’re the available property tax exemptions and how they affect qualifying for a VA loan. Call us today to schedule your appointment at 800-720-0250. Get the facts about Home Loans for Disabled Veterans with us.

Disability Compensation Benefits for Veteran Income

One of the most common questions about disability compensation for veterans is whether or not this helps your income when applying for a VA loan. When disabled veterans apply for a VA mortgage, you still need to follow the normal process for documenting your income. However, you can use your disability compensation as part of your income when applying for a VA mortgage. The higher the income, the greater chance you have of getting a mortgage.

Are Disabled Veterans Exempt from the VA funding fee?

Disabled veterans, surviving spouses of veterans who passed away from service-connected medical issues, and active-duty service members who have a Purple Heart may all be exempt from the VA funding fee. This means that veterans who are currently getting disability benefits are usually able to waive the VA funding fee saving you thousands of dollars.

Being eligible to waive the VA funding fee helps disabled veterans save thousands of dollars in closing costs when purchasing a new home or refinancing their current one. Even if you close on your loan before you start to receive benefits, you may be eligible to have your VA funding fee returned to you if you were in the middle of applying for disability at the time.

Our VA home loan experts can help guide you through understanding how your VA disability can save you money on your VA funding fee.

How do Disabled Veterans Qualify for VA Loans?

Veterans must meet some requirements before they can become eligible for VA loans and all the benefits they provide. The most common form of documentation required by VA lenders is a Certificate of Eligibility, commonly referred to as a COE. The majority of veterans have to meet the following criteria before applying for a VA loan:

  • National Guard
  • Served more than 6 years
  • Active Service During Peacetime
  • Served for 181 days
  • Active Service During Wartime
  • Served for 90 consecutive days

 

The qualification rules for a VA loan are hard to figure out. At HomePromise, our VA home loan professionals are expertly trained to handle your questions. Contact our experts today at 800-720-0250 to receive a free quote.

Are There Grants Available to Help Disabled Veterans? 

In addition to the benefits for disabled veterans when financing a home through a VA loan, disabled veterans may also qualify to receive specific grants to help with accessibility modifications to a home. The Special Housing Adaptation (SHA) and the Specially Adapted Housing (SAH) grant are two grants that may be available for disabled veterans with a service-connected disability rating from the VA.

Each grant provides their own benefits for disabled veterans, including building a home with modifications for the veteran’s disability, remodeling the veteran’s current home to meet their disability requirements, changing a home that the veteran intends to purchase in order to meet the needs of their disability, and more. You can find out more about housing grants on the VA website here.

If a disabled veteran isn’t eligible for either of these grants, another option available to them is a VA refinance designed to take money out of your home for home improvements. In addition to a grant, a VA refinance may be helpful if the work the veteran needs done is greater than the grant will allow. To help navigate these options, call our HomePromise experts today at 800-720-0520. Our VA loan professionals will provide you a free quote quickly and easily.

How Does Disability Compensation Contribute to VA Home Loan Applications?

In order to qualify for a VA loan, the veteran must have a reliable source of income that is likely to continue into the future. As disability compensation is expected to continue for disabled veterans, this income source counts toward your qualifying income when applying for a VA loan. Veterans who receive disability compensation from the VA are able to count this as income when completing a VA loan application. Putting your disability compensation toward your income can help you meet VA loan income requirements.

Conclusion

HomePromise is a flexible and compassionate lender approved with the U.S. Department of Veterans Affairs to provide VA home loans. The HomePromise approach takes into account the unique needs of each veteran and their families. Our HomePromise experts will review your credit score, credit history, and income sources to see if you qualify for a VA loan.

In addition to over-the-phone and in-person, our flexible services also include the ability to apply online. Our VA loan experts are here to provide you expertise to help you navigate these important decisions. Call us at 800-720-0250 to receive a free quote from one of our experts today.

What is the VA Loan Origination Fee?

What is The VA Loan Origination Fee?

When considering different mortgage lenders, one important factor to be aware of is what fees they will charge you. One of the fees mortgage lenders will charge you is the VA loan origination fee. Learn more..

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Can I get a VA Loan if I Don’t have a job

Can I get a VA Loan if I Don’t have a job

Can I get a VA Loan if I Don’t have a job

VA lenders have to consider your sources of income when applying for a VA loan.  Having a job can be a big plus as a loan applicant for a VA mortgage but it isn’t required.  The VA home loan program allows lenders to look at other sources of income. In fact, some VA lenders can even turn your assets into income to qualify for a VA loan application. Can I get a VA Loan if I Don’t have a job? Keep reading to find out.

So, having a job isn’t a requirement if you find a lender who can work with your other income sources. The key is to find a flexible VA lender who knows how to work through the complicated VA lending rules.

Can I Use Part Time Income to Qualify for a VA loan?

Some service members are worried that a part-time job can’t be used for a VA mortgage application. You may have been told that only full time income is allowed. That’s not true in all cases. The key is how your lender does the verification of income when they review of your employment history. 

A part time job can be used as qualifying income but there are some special rules that a VA loan expert will help you navigate.  An expert review of your pay stubs will also be important to be able to use part time income.  If you call one of our VA loan experts at 800-720-0250 you can find out if your part time job can be used for a VA loan application.

Using VA Disability Income to qualify for a VA loan

A helpful source of income for some veterans is from a VA service-connected disability.  Some lenders will allow you to use a special calculation of your disability income to increase the income amount to a level higher than is used by other VA lenders.  This increase (some call it a “gross up”) is very important to get you the most income from your VA disability.  This approach to VA disability income worries some lenders so they make the income lower than is allowed by the VA.  If you have lower income allowed from your VA disability, then you might get denied for a VA loan when you shouldn’t be.  If you don’t have VA disability income yet but you think you might be eligible for it, you can find out how to submit a VA disability claim on the VA website here.

Get an Expert Review of your Tax Returns

An expert review of your tax returns may uncover income that some VA lenders may overlook.  Tax returns are very complicated and not all lenders are experts and reading them.  You may find that you can get approved for a VA loan using income that can be uncovered in your last two years of federal income tax returns.  A VA home loan expert at HomePromise can do that review for you and give you feedback to see if income can be found to use for a VA loan.  Give us a call at 800-720-0250 to get an expert review of your tax returns.

Other Kinds of Income

There are other kinds of income that can be used for VA home loans including retirement income, social security income, your spouse’s income, a family member’s income and investment income.  These each have some VA lending rules that have to be used to determine if they are acceptable and how much of these income sources can be used.  If these income sources come in on a monthly basis then you should discuss them with a VA lender as an alternative income source.

Get Expert Advice Today

HomePromise is a flexible lender approved with the US Department of Veterans Affairs to make VA home loans.  The HomePromise approach is not a rigid approach but one that takes into account your special circumstances.  At HomePromise, we will review your credit score and credit history along with your income sources to see if you qualify for a VA loan.  Call us at 800-720-0520 for help today.

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VA Loan Review – Offer Accepted

VA loans give you many advantages that other loans cannot offer including government backed loans like FHA. When buying a home with your VA home loan benefit, no down payment is usually required, there is no monthly mortgage insurance (not to be confused with homeowner insurance) and, you can even prepay as much of the loan as you want without being penalized. However, after obtaining a VA eligibility certificate, you have one more hurdle to cross: getting your home purchase offer accepted by a seller. Learn more

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Can A Surviving Spouse Get A VA Loan

Can A Surviving Spouse Get A VA Loan

Can A Surviving Spouse Get A VA Loan

We are often asked, can a surviving spouse get a VA loan. The answer is yes. This is because the department of veterans affairs allows the extension of the VA home loan benefit to surviving military spouses.

The VA home loan benefit program is designed to help surviving spouses of veterans and military service members who died while in service or from a service connected disability.

You may be eligible for this benefit if your spouse died during active duty or due to a service related disability.

Surviving Spouse Eligibility Requirements

For a surviving spouse to become eligible for a VA loan one must meet at least one of the following eligibility requirements:

  • You are eligible if you are the unmarried surviving spouse of a veteran who is missing in action or who was a prisoner of war (POW).
  • If you are the surviving spouse of a veteran or military member, who died during active service or from a service related disability and didn’t remarry before December 16, 2003 or before age 57.

You may also be entitled to surviving spouse benefits if the veteran’s death did not result from a service-related cause. Listed below are the conditions for eligibility.

  • The Veteran who was totally disabled for ten or more years directly before death.
  • A Veteran rated totally disabled for five or more years after immediate separation from service.
  • As a former prisoner of war, the veteran was totally disabled for at least one year preceding death after September 30, 1999.

Certificate Of Eligibility (COE) For Surviving Spouse

Your eligibility for a VA loan requires proof to verify your status as a surviving spouse. Before applying for VA guaranteed mortgages, you must obtain a Certificate of Eligibility (COE).

For a military spouse to qualify, you must submit a copy of the Veteran’s DD214. For more information about any compensation you receive, call one of our VA loan experts at 800-720-0250.

You can apply for your eligibility online with the VA or save time by having HomePromise obtain it for you.  Call 800-720-0250 for more help.

VA Loan Benefits For Surviving Spouses

As a surviving spouse you are entitled to use your VA home loan more than once. Once you purchase a home you may have remaining eligibility to purchase a new home. Many think you can’t use your benefit a second time but often you can. 

The rules and calculations for using your benefits again are complicated. You can call our VA home loan experts for help at 800-720-0250.

There are many benefits to using the VA home loan program that are extended to surviving spouses like:

  • Do not need to pay a funding fee
  • Competitive interest rates
  • Less rigid credit score requirements
  • No down payments for most loans
  • 100% cash out refinancing
  • No mortgage monthly insurance

Refinancing VA Loans With HomePromise

VA Loan Requirements

The VA Home Loan benefit is one of the most significant benefits for active military members and Veterans. A VA Home Loan comes with financial benefits for qualified Veterans. The VA loan income guidelines and credit score for VA loan approval are more flexible than other home loan programs. For many Veterans, the VA Home Loan benefit is their only option for owning a home. See if you qualify

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3 Myths About VA Loans And Bad Credit

3 Myths About VA Loans And Bad Credit

3 Myths About VA Loans And Bad Credit

Accounting for only 2 percent of all mortgages for decades, VA loans now consume 10 percent of mortgage volume today. So, in this article let’s discuss the top 3 myths about VA loans and bad credit.

While the VA has made many changes in recent years to the VA home loan benefit program, sellers and borrowers still remain hesitant about home loans backed by the Department of Veterans Affairs.

Top Benefits Of A VA Loan

Some may argue the so-called “ups” and “downs” of VA loans. But, As a Veteran or active military member looking to purchase a home, VA loans are of huge benefit so at HomePromise we want to clear up some myths. Fact is, this type of loan is almost always your best option.

There are many benefits in using your VA home loan benefit. Here are three to begin with:

  1. There is no mortgage insurance.
  2. You can purchase a home without having a down payment.
  3. The VA does not require any specific credit score.

The main downside to VA loans is not truly based on fact. It’s more of a myth. That is some sellers believe the closing process on a VA loan will take much longer than on a conventional loan. This just is not the case.

As for other myths about VA loans and bad credit, we will discuss the top 3 myths causing hesitation among some people. We will share the facts in an effort to debunk these myths. 

Myth 1.

Certificate of Eligibility Takes Forever

As a veteran, you must meet the basic eligibility requirements in order to become a VA borrower. The most basic requirement for a VA loan is either serving 90 consecutive days during wartime or a minimum of 181 days active duty during peacetime. National Guard or Reserves members must have served at least six years to qualify. Also note that National Guard and Reserve service can’t be inactive.

The myth about this process taking forever is drawn upon past years when the verification process required the mailing of a letter to the VA.  In today’s world with the internet there is no longer such a lengthy waiting period. Lenders like HomePromise can now often verify your eligibility via the internet in minutes. So, myth #1 is debunked!

Myth 2.

VA Loan Rates Are Higher Than Other Loan Programs With Bad Credit

VA loans have a number of advantages to both veterans and active military members. This type of home loan requires no down payment. And to date, the VA does not specify a minimum credit score for eligible borrowers. With no down payment, the entire process can be faster than any conventional loan offered.

In addition to a potentially quicker buying process,  VA borrowers with low or bad credit scores can usually enjoy rates lower than those available on conventional loans. That’s because low rate conventional loans stop at credit scores of 640 or 620.  So, if your credit score is under 620 you’ll have to get a hard money conventional loan which will usually have a really high rate..

Myth 3.

Higher Default And Foreclosure Rate

It’s true most lenders deny loan applications for those with bad credit. This is due to a higher risk of defaulting and foreclosure. Truth be told, VA loan borrowers default on their loans less than FHA loans, which have similar low down payment guidelines. In fact, VA loans have had lower default rates than FHA loans for more than a decade.

Many have attempted to explain reasons why VA loans have lower delinquency and default rates than FHA loans.  We won’t get into that debate here but this third myth is definitely one that everyone should agree is false.

How to Get a VA Loan With a Challenging Credit History

How to Get a VA Loan With a Challenging Credit History

A VA loan is a specialized type of government loan, backed by the Department of Veterans Affairs (VA). It allows you to qualify for a low-cost mortgage when you’re looking to purchase or refinance a house even if your credit isn’t perfect. If you’re on active duty in the military, a military surviving spouse, or are a veteran, you’re potentially eligible for a VA loan. Read more

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Why And How To Refinance Your Mortgage

Why And How To Refinance Your Mortgage

Why Refinance Your Mortgage?

When you refinance your mortgage it replaces your current mortgage loan with a new one. People refinance for many reasons. Some people refinance their mortgage to reduce the interest rate and save money, reduce their monthly payments or perhaps consolidate credit card debt. By cashing in on your home’s equity, one can stay ahead of financial goals. You might choose to refinance your home as a means to pay off your home loan faster. Another reason to refinance your mortgage might be to switch from an adjustable-rate mortgage to a fixed-rate loan.

As you can see, there are many beneficial reasons to refinance your mortgage. Read on to learn more about why and how to refinance your mortgage.

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How To Get A VA Loan With A 580 Credit Score

How To Get A VA Loan With A 580 Credit Score

How To Get A VA Loan With A 580 Credit Score

The VA home loan benefit makes owning a home possible for Veterans, active service members and surviving spouses. Unlike conventional loans, The Department of Veterans Affairs doesn’t require a specific credit score. You still want to avoid having bad credit because VA lenders will still look at your credit history and may deny you based on severe credit events in your past. It’s very important to discuss your credit history with a VA lending expert at 800-720-0250.

VA loans require this! So, while having bad credit or a low credit score doesn’t mean you’ll be denied a VA loan, a higher score may help keep your interest rate down. This will allow for more affordable payments over the life of the loan. You may also enjoy buying a home without having to make a down payment.

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