Questions About VA Mortgage Rates
Q. Are all VA mortgage rates the same?
A. No, the VA guarantees the loan but it is up to the individual VA lender to offer the rate.
Q. Can I buy a home using a VA loan with zero money down?
A. Yes, the VA loan is one of the last loans that allows for 100% financing.
Q. Do I need a good credit score for a VA mortgage?
A. The VA doesn’t have a minimum credit score requirement, but the lender that finances the loan probably will have a minimum.
Q. Are some VA loan officers better than others?
A. Yes, you want to make sure that you are working with a VA loan specialist. VA loans are very easy to do if you have the experience and are familiar with the little nuances that the VA requires.
Q: Do I need to provide income documentation for the last 30 days?
A: No. You do not need to send pay stubs, W2’s or tax returns like you would with most other programs.
Q: Do I need to bring cash to the table when I sign the closing documents?
A: There may be exceptions, but the program is designed so that no out-of-pocket costs are required.
Q: What happens to the funds in my current escrow account?
A: We can roll escrow funds into the refinanced loan to reduce the loan amount, or use them to pay for closing costs.
Q: I want to make some updates to my home to make it more energy efficient. Can you help me do this?
A: Yes. You can add up to $3,000 in energy efficiency upgrades to your home without needing an inspector to certify.
Q: Money is tight. Can you provide any type of short term relief?
A: Yes. We can set up your refinance so you can skip up to two monthly payments.
Q: I have a second mortgage on my house. Can that be rolled into the refinance, or does it need to be subordinated?
A: The VA Streamline program requires that a second mortgage stay ‘as is’, and be subordinated to the refinanced 1st mortgage.
Q: I already used my VA Entitlement for the original mortgage on my home. Can I reuse it for the VA Streamline?
A: Yes. You can reuse your entitlement from the original mortgage on the same home for the refinance.
Q: What is the VA Funding Fee? How much is it?
A: The VA Funding Fee is a small percentage of your loan, and it goes to the Veterans Administration. It is an insurance premium to the VA so they can back your loan. This is how you can receive such great financing options. If you are active duty for your first use of the VA loan, the fee is 2.15% of the loan amount. For each additional use, it is 3.3%
Q: I am a disabled veteran. Do I need to pay the VA Funding Fee?
A: If you are rated as 10% disabled or higher, you are exempt from paying the VA Funding Fee.
Q: Is there a pre-payment penalty if I want to make additional payments?
A: No. There are no pre-payment penalties. You may pay off the loan partially or completely at any time.