Military Direct Mortgage is dedicated to serving those who served.
VA Loan Refinancing
For most Americans it can be a struggle to refinance with a conventional home loan. Fortunately, there are subsidies in place by the United States Government to assist our service men and women and help them overcome high interest rates. For years Military Direct Mortgage has been helping our active duty military, Veterans and their families reap the benefits of ultra-low interest rates and make it easier for them to refinance their home loans.
Stricter underwriting standards and low interest rates have led to an increased demand for VA loan refinancing services and military home loans. One of the biggest benefits of qualifying for a VA home loan is that homeowners get to take advantage of being able to refinance up to 100% of the home’s value. Additionally, Vets and active duty military don’t have to pay for mortgage insurance, whereas conventional refinancing agreements require some equity in the house. Please keep in mind total finance charges may be higher over the life of the loan.
Military Direct Mortgage has the unique advantage of being able to offer home loans to Veterans, active-duty military personnel and their family members.
As a VA approved lender, it is our honor to serve and assist you in purchasing your home. Whether it is your starter home, your retirement home or just a transition home, it is our privilege to be able to provide affordable VA home loans for those that serve our country. With ownership comes a great sense of pride, now realize that for yourself.
Benefits of VA Home Loans
Benefits of VA loan refinancing are short and sweet – you save time, you save money; ultimately making your life easier. You have given your service to our country, and now it’s time for you to take the benefits offered by the federal government and VA approved lenders that you rightfully deserve. You have faithfully served your country and that should afford you a few advantages. It’s time for you to take the benefits offered by the federal government and VA approved lenders, and create a beautiful life for yourself, and in some cases, your families. Begin living a bright future with the help of Military Direct Mortgage.
- No Private Mortgage Insurance – Many conventional lenders require borrowers to pay private monthly mortgage insurance unless they’re able to put down at least 20 percent, which is a tough task for many veterans. (PMI) Private mortgage insurance is an insurance that protects lenders in case of a borrower default. With a VA Home Loan, however, there is no PMI. This is because the federal government backs all VA Home Loans and assumes the risk on behalf of the borrower that is typically covered by the PMI. The advantage of a VA home loan is that is allows you to build more equity in your house, saving you thousands on your military mortgage.
- Competitive Interest Rates – Interest rates on home loans are based on risk assumed by the bank to finance the loan. Because the VA backs each VA Loan, financial institutions carry less risk and can offer lower interest rates. The savings start to add up when you pair that lower interest rate with the ability to purchase a home with no money down and no private mortgage insurance.
- No Pre-Payment Penalty – Traditionally, paying off a home loan before it matures results in a pre-payment penalty. This is because lenders miss out on additional opportunities to collect interest payments. The pre-payment penalty is a way for financial institutions to recoup some of that money. VA home loans allow borrowers to pay off their home loan at any point without having to worry about a pre-payment penalty.
If you are a Veteran or active duty military and interested in a VA Loan Refinancing, here’s a closer look at this refinance option. It’s always a good idea to see the facts and understand the ins and outs of the option so you can make the best decision for your particular situation.
VA Home Loan Requirements
A VA home loan is available to Veterans and active-duty military personnel. Contact Military Direct Mortgage today to find out about VA home loan requirements and the benefits of a military mortgage. In most cases, you qualify if:
- You have served on active duty for more than 90 consecutive days during wartime
- You have served more than 181 days of service during peacetime.
- You are a National Guard member or Reservist Veteran and have served at least six years.
Surviving spouses of veterans who lost their lives while in service or from a service-related disability, are eligible. Contact us today if you have any questions about this. One of our Loan Officers would be happy to have a conversation with you about VA home loan requirements and benefits.
VA Home Loan Requirements for Refinancing
We offer special options for refinancing. Interest rates are at an all-time low, and refinancing your home with a VA loan could significantly decrease your monthly payments. VA loans have a government guarantee and there is no prepayment penalty. We offer two great options for VA mortgage refinancing – both with low closing costs, no monthly mortgage insurance and 100% financing.
- VA Streamline (IRRRL) Refinance – A Streamline Refinance allows veterans who currently have a VA Loan to refinance into a lower interest rate, reducing monthly mortgage costs. Streamline refinance loans are pretty hassle free as they offer minimal paperwork and often require little-to-no out of pocket costs. VA borrowers can roll some of the closing costs into the total loan amount and homeowners can obtain this type of refinance without an appraisal, which is a big cost savings benefit.
- Cash-Out Refinance – The other popular option, known as the Cash-Out Refinance, allows borrowers to tap into their home’s equity and use it as cash. This type of refinance is available to any qualified veteran homeowner, regardless of what type of mortgage they currently have. Take advantage of 100% cash option.
The Application Process | VA Home Loan Requirements
Once you’ve decided on a house and a loan amount the work with your lender starts to put the wheels in motion. Your loan officer will take you through the application process thoroughly from start to finish. It’s important to complete the application thoroughly so the rest of the process runs smoothly. VA Home Loan requirements are easily explained.
- Underwriting – an underwriter is employed by the lender to check your application and supporting documents in a 5-step process: verification, appraisal, title search and insurance, flood certification, and surveying. While all this information is being gathered you can help by promptly responding to your lender’s request for more information and to stay in touch with your lender and real estate agent on a regular basis.
- Conditional approval – this means your loan is approved, subject to additional conditions you must provide or meet to the satisfaction of the underwriter.
- Approval – once outlined conditions are met, and no other new information is introduced (job loss, credit card debt, etc.) your loan is then approved and set for closing.
- Pre-closing – is a meeting prior to formal closing to review documents, sign appropriate documents and prepare for actual closing. The lender will provide a checklist at this time.
- Clear to close – those three little words are music to your ears! They mean all the hoops have been jumped through, all the paperwork is done and the only thing you’re waiting for is your time at the closing table. Once your file is clear to close, the bank sends all information to the closing company, where they proceed to put it all together, incorporating the files from the bank with their own file on your home’s history and title insurance policy. At this time your lender or realtor will let you know how much money to bring to closing.
- Closing – time to breathe! You’ve provided certified funds (no checks, credit cards or cash) to your closing company. That money will be used to pay all the parties involved, your Loan closes and you move into your new home!