Understanding the Latest VA Mortgage Loan Updates
Veterans have access to some of the most advantageous mortgage loan options available, and Indigo Mortgage is here to help them navigate these opportunities in both New Mexico and Colorado. Ben Lucero, a trusted mortgage expert, emphasizes the importance of understanding the latest updates regarding VA mortgage loans.
No Down Payment for VA Jumbo Loans
One significant update for veterans is the elimination of down payments for VA Jumbo Loans. Previously, veterans were required to put down a percentage of the loan amount based on their remaining VA loan entitlement. However, that is no longer necessary as long as the veteran has all of their eligibility restored and does not have any active VA loans. This means that whether a veteran is purchasing a home for $150,000 or one for more than a million dollars, they are not required to make a down payment, provided they have full entitlement.
Furthermore, this change can significantly impact a veteran’s purchasing power. By not having to make a down payment, veterans can retain more cash reserves, which can be especially beneficial when planning for future expenses, home improvements, or emergency funds. Additionally, this can help veterans compete in a competitive housing market where cash offers or large down payments often sway sellers. Veterans can now make stronger offers without the burden of a down payment, leveling the playing field.
Reusing VA Loan Entitlement
Additionally, veterans can reuse their VA loan entitlement multiple times as long as all previous VA loans are paid off. This opens up a range of possibilities for those looking to purchase additional properties or upgrade to a larger home. Indigo Mortgage works with veterans to assess their eligibility and explore all potential VA loan options.
A practical example of reusing VA loan entitlement can be seen in cases where veterans sell a current home with a VA loan and purchase another property. By paying off the existing VA loan, they restore their entitlement and can apply it to a new home loan. This allows veterans to leverage their VA benefits again and again, maximizing their homeownership opportunities throughout their lifetime.
VA Funding Fee and Mortgage Insurance
A crucial benefit of VA loans is the absence of monthly mortgage insurance, regardless of the loan-to-value ratio. However, veterans should be aware of the VA funding fee, which can vary depending on whether it is a first-time or subsequent use of their VA loan benefits. For first-time users, the funding fee is 1.4%, while for those using it again, it increases to 3.6%. Notably, veterans receiving 10% or more in disability payments from the VA are exempt from paying the funding fee, which can result in substantial savings.
The funding fee can be financed into the loan or paid upfront at closing, giving veterans flexibility in managing their finances. Understanding how the funding fee works and how it impacts the overall cost of the loan is crucial. Indigo Mortgage assists veterans in calculating potential savings and determining the best course of action based on their specific financial situation.
Understanding Closing Costs
Veterans also need to account for closing costs, which are not covered by the VA loan. These costs can include appraisal fees, title insurance, lender fees, and other expenses. Indigo Mortgage helps veterans understand what to expect at closing and ensures they are fully informed about every aspect of their loan.
Moreover, some closing costs can be negotiated or covered by the seller, reducing the financial burden on the borrower. Additionally, veterans may be eligible for lender credits or incentives that can further offset these costs. Working with a knowledgeable lender like Indigo Mortgage can provide insight into strategies for minimizing closing costs while still securing a favorable loan term.
Expert Guidance from Indigo Mortgage
Ben Lucero and the Indigo Mortgage team are committed to providing veterans with the best possible service and guidance when it comes to VA loans. Whether a veteran is a first-time homebuyer or looking to refinance an existing VA loan, they can rely on Indigo Mortgage to deliver expert advice and support every step of the way.
Veterans are encouraged to schedule a consultation with Indigo Mortgage to review their eligibility, funding fee requirements, and available loan options. This personalized approach ensures that every veteran receives tailored guidance based on their specific needs and financial goals. With decades of experience in the mortgage industry, Ben Lucero and his team are well-equipped to help veterans navigate the VA loan process, from application to closing.
For more information on VA mortgage loans or to speak directly with Ben Lucero, veterans can contact Indigo Mortgage in New Mexico and Colorado. Whether you are just starting to explore your VA loan options or need assistance with refinancing, Indigo Mortgage is ready to help veterans maximize their home buying potential.