Good-Deal VA Financing for Homes Still Available
By Public Affairs Office, 115th Fighter Wing
/ Published October 15, 2010
Madison, Wis. -- Are you looking to buy your first home? If so, did you know that you may still be eligible to receive a tax credit up to $8000? To be eligible for the tax credit extension, you must be a qualified service person. That is, a uniformed service member of the U.S. Military, a member of the Foreign Service or an employee of the intelligence community. (In some cases, spouses can also qualify for VA loan benefits.) You must have been on official extended duty outside of the continental United States for a period of 91 days or more between January 1, 2009 and April 30, 2010. Exceptions may be made for service personnel who did not meet the time requirement due to being sent home for medical reasons. Contracts for purchase must be signed by April 30, 2011.
A VA loan offers a number of advantages over non-VA loans, says Racquel Farber of Inlanta Mortgage in Madison . No Down Payment: "VA loans often times don't have up-front or out-of pocket expenses. A VA loan doesn't require a down payment and the seller is allowed to pay the closing costs for you," says Farber. Low Interest Rate and Assumable Mortgage: "VA loans often have lower interest rates than a non-VA loan. With a VA loan, you can transfer your mortgage to someone else. They would assume your mortgage. This can help sell your home, especially if the interest rate on your mortgage is less than the current interest rate." Additional Benefits for Disabled Veterans: "If you are 10% or more disabled, the VA waives the funding fee. Also, if you have a permanent and 100% service-connected disability, you may be eligible for a $50,000 grant for adapting a home to accommodate your disability."
Not a first time home buyer? There are other programs for homeowners with existing VA loans. Do you have a VA loan right now and need to take equity out of your home to consolidate credit cards, pay for your child's college tuition or maybe make improvements to your home? If you have sufficient equity in the home, you may qualify for a Cash-Out Refinance. Are interest rates currently lower than what you are paying? With a VA Streamline Refinance, current VA homeowners can lower interest rates with little to no out-of-pocket costs. These loans are able to be executed faster with less documentation than your standard loan. With interest rates at an historic low how much could you be saving on your monthly mortgage payment?