Home loans guaranteed by the Office of Veteran’s Affairs (VA) are rising. In fact, in Florida, VA mortgages to purchase a house increased by 22.8 percent in 2014.1 Eligible borrowers (veterans with at least 90 days of active duty during war years) can take advantage of low-cost mortgages at very favorable terms. The VA guarantees the loans, which are offered by approved lenders. The VA’s guarantee protects the lender against loss, which means the lender provides more favorable loan terms to veterans.

Why the increase in VA loans? There are a lot of reasons:

  • Mortgage rates are at near-historic lows, according to Freddie Mac.2 That means many veterans are rushing to lock in these rates while they’re available.
  • Military borrowers can finance up to 100 percent loan-to-value (LTV) on purchase loans, and they have access to a streamlined refinance program that allows them to quickly take advantage of lower rates.
  • In addition to lower mortgage rates, VA loans feature easier mortgage approval requirements.
  • The VA loan benefits can be used over and over, as long as the VA loan has been paid in full following a sale, another veteran has assumed the outstanding VA loan balance, or there is enough remaining Entitlement.

Streamlined Refinancing

The VA mortgage program also features one of the easiest and fasted home loan refinancing programs available in the mortgage market, called the Interest Rate Reduction Refinance Loan (IRRRL). This program waives almost all of the normal verifications and documentation that other refinancing loans require. Qualified veterans don’t have to provide income documentation, credit, verification of employment, or a property appraisal. As long as you’ve made their mortgage payments on time over the last year, and refinancing will save you money, the VA will allow you to refinance.

Take Advantage of Your VA Benefits

If you’re a qualified veteran and want to find out more about your VA home loan benefit, contact Embrace Home Loans at 407-733-6425. We’re mortgage professionals with extensive experience in VA mortgages, and we’ll work with you to get you home you’ve always wanted.