VA Mortgage Loans
Unlock the door to homeownership with our VA Mortgage Loans.
VA Mortgage Loans
A VA loan is a mortgage offered by the U.S. Department of Veterans Affairs VA (through regular lenders like Alterra). The loans are guaranteed by the US Government and the guarantee means lower interest rates for eligible borrowers.
VA loans are available to active and veteran service personnel and their surviving spouse.
Down Payment Requirements
One of the major benefits to VA loans is that no down payment is required. Eligible borrowers only need to come to the closing table with funds to cover lender and third-party fees (like eligible lender fees and title and settlement costs).
Loan Terms
VA loans come only come in the in the standard Fixed Rate and Adjustable Rate Mortgage (ARM) terms. Typically 30Yr, 25Yr, 20Yr and 15Yr fixed rate terms.
ARMs are usually 30Yr loans, but have a choice of Fixed initial terms – like 5, 7 and 10 year fixed terms. After the initial fixed term ends, the rates can adjust. ARMs are typically riskier than Fixed Mortgages because the interest rates can increase over time.
Funding Fee (aka Mortgage Insurance)
VA loans have something similar to Mortgage Insurance; it is called a Funding Fee and is an upfront fee, paid at the closing, but is typically added onto the mortgage loan amount and because the fee is “financed” into the loan, there is no out of pocket for the borrower at closing. The premium is paid back as principal in your regular month mortgage payments.
VA loans do not require any ongoing monthly mortgage insurance premiums to be paid. This is very different to FHA and USDA loans.
The Funding Fee is essentially the mortgage insurance collected by the VA to cover losses on mortgages in the future.
The funding fee is variable and is dependent on the amount of initial down payment and whether or not the borrower is a first time user of a VA loan. The maximum fee for a first time user is is 2.3% of the loan amount and 3.6% for a repeat borrower.
All VA borrowers must pay the funding fee, unless they are exempt due to having a “Service Connected Disability”. We can only determine this by examining your Certificate of Eligibility. Borrowers should have their Form DD214 available early on to assist with this.
Restrictions
If an unmarried couple are looking for financing both borrowers need to be Veterans.
Exhale Lending is a mortgage brokerage firm that embodies trust, transparency, and a genuine desire to help clients achieve financial serenity. With our client-centric approach, expertise, and unwavering commitment to excellence, Exhale Lending is poised to make a meaningful impact on the journey towards homeownership for individuals and families alike.
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Exhale Lending, L.L.C.
Equal Housing Opportunity
Office Location
Cary, NC 27511