Affordable Home Loans For Veterans
Military Direct Mortgage is a VA approved lender and has been helping Veterans and active duty military with affordable home loans for years. Military mortgages make buying a home reasonable, with several financial advantages that are subsidized by the US government. Nothing brings us a greater sense of pride than being able to provide military mortgages to those that want to put down roots. You so faithfully served us, now allow us to serve you. With ownership comes a great sense of pride, now realize that for yourself.
Benefits of Military Mortgages
The stand-out perk of qualifying for a Military Mortgage are the savings. The government has made it increasingly easy for military personnel to have access to affordable loans and housing options. Because military mortgages are subsidized by the United States, Vets and active duty military get to enjoy competitive interest rates and no pre-payment penalties. Begin living a bright future with a VA Mortgage from Military Direct.
- No PMI (PMI) Private mortgage insurance is an insurance that protects lenders in case of a borrower default. With a VA Mortgage, however, there is no PMI. This is because the federal government backs all VA Mortgages and assumes the risk on behalf of the borrower that is typically covered by the PMI. The advantage of a military mortgages is that is allows you to build more equity in your house, saving you thousands on your VA 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 military mortgage, 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.
Requirements for Military Mortgages
Our military mortgages are available to all Veterans and active-duty military personnel. Below are the basic VA loan requirements. It is important to mention that surviving spouses of Veterans are also eligible for military mortgages as well. 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 mortgage requirements and benefits. 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.
The Application Process for Military Mortgages
Once you have settled on the home you want, it is time to start drawing up your VA home loan application. It is paramount that you thoroughly fill out and review all sections properly to ensure efficient processing. Military Direct Mortgage has a wonderful team of experienced loan officers that specialize in military mortgages for Vets and active duty personnel. It is out honor to be able to help you along your way to home ownership.
- 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!
Military Mortgage Refinancing Requirements
Military Direct Mortgage offers two great options for VA mortgage refinancing both with low closing costs, no monthly mortgage insurance and 100% financing. 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.
- 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.