In 1944, Congress passed The Servicemen’s Readjustment Act was to offer a number of benefits to veterans as well as their surviving spouses. Among these benefits was the VA Loan program created to help American veterans purchase homes when alternative financing was not available. A VA Loan is one that is guaranteed by the U.S. Department of Veterans Affairs (VA). This guarantee makes it possible to offer Veterans more desirable terms and conditions than other comparable loan programs. West Ridge Financial is proud to serve our veterans throughout Roosevelt, Vernal, Alpine and the surrounding Utah communities.
The U.S. Department of Veterans Affairs has guaranteed over 20 million loans since the establishment of the VA loan program over 70 years ago. The majority of veterans, military, and spouses of deceased military members can apply for a VA loan. A Certificate of Eligibility (COE) is needed before applying for a VA Loan and there are certain income and credit requirements that a borrower must meet. The VA loan offers a number of advantages and benefits over similar loan programs.
Benefits of a VA loan:
- No down payment if the appraised value of the home is not greater than the sale price
- No private mortgage insurance (PMI)
- No penalty for pre-payment
- Closing costs limited by VA regulation
- VA funding fees (up to 3.3%) can be financed with the loan
- The VA Loan is an assumable loan which means a buyer can take over a seller’s existing loan.
- Loan amount up to $417,000 with no down payment. In certain counties the limit can be higher.
The VA loan program provides financing options for both purchases as well as refinances. VA Purchase Loans can be used for the purchase of a primary residence. There are both Cash-Out Refinance and Interest Rate Reduction Refinance Loan (IRRRL) options for those with existing VA loans. Cash-Out Refinances provide cash for alternative needs such as home improvements and debt consolidation. IRRRL loans, also known as Streamline Refinance loans, allow borrowers to refinance an existing VA loan at a lower rate.
West Ridge Financial is dedicated to helping American Veterans throughout Utah with all of their home financing needs. Whether you are looking to purchase a home in Roosevelt, or are looking to refinance an existing VA loan in Vernal, our experienced team of mortgage professionals can help you. For more information on VA loans, contact West Ridge Financial today.