Qualifying for a VA loan is a wonderful privilege, especially if you’re not in the best financial standing to get approved for a conventional loan. However, not everyone knows what it is and how it works. If you’re not familiar with its different processes, you can miss out on incredible opportunities to save on your finances. For example, not all home buyers are aware of the VA home loan assumption clause.

What Is a VA Home Loan Assumption?

Once you opt for a VA home loan to pay for a property, the future buyers can start paying your outstanding mortgage without creating a new arrangement. This makes a smoother transition of ownership while allowing your buyer to purchase the real estate from you sooner. However, this process isn’t as clear-cut and simple. This is why it’s vital to understand what VA home loan assumptions are.

In this article, we’ll share three things you should know about VA home loan assumptions.

1. Compatibility with Lenders. Since different lending companies have their own policies concerning VA loans, your specific mortgage lender may not allow an assumption to future buyers. Some companies keep applications under pending lender approval to aid this process if a prospective buyer qualifies for the payment amount. Generally, anyone can assume the mortgage you currently have on a property, whether they’re qualified under the classifications of VA loans or not. This means civilians can assume your loan, allowing you to expand your buyer market.
2. Necessary Prerequisites. A buyer who will assume your VA loan from you needs to take on all mortgage terms you’ve signed on with your current lender. Additionally, they need to present a 12-month history of consistent mortgage payments. Besides consistency in repayments, they must also fit your specific lender’s financial benchmarks. This includes income records, credit history, and debt-to-income ratios. The prospective buyer must also pay a funding fee of around 0.5% of the current loan balance. These are just some of the prerequisites a buyer needs to follow.
3. Potential Selling Points. As a homeowner, the benefits of securing a home loan don’t just stop with your mortgage plan. Since all homes are potential investments, you need to realize the advantages of VA home loan assumptions with your marketing strategy. Although not all US citizens can qualify for a VA loan, others can reap the benefits of those who plan to sell their homes through a VA-backed mortgage plan. A buyer who wants lower interest rates can benefit from the locked rate you’re benefiting from now. If they opt to assume your loan, the buyer must follow the exact terms of your existing loan, including the years remaining and interest rates set during your initial negotiations with the lender. Additionally, the buyer won’t have to pay for an origination fee and appraisal since the property is still technically under your obligation to repay.

Conclusion

Although VA loans are government-backed mortgage plans, private lenders will have different restrictions and policies for applicants. While it will still maintain the clauses above, each one will have unique benefits and advantages, depending on which vendor you choose. This is why it’s necessary to look for a mortgage lender that can guide you through the process of securing a VA loan.

Apply For a VA Loans in Phoenix, AZ

At Desert Springs mortgage, our team is dedicated to helping our clients finance their dream homes. If you need a VA loan in Phoenix, AZ, our professional mortgage experts can assist you throughout the entire process. Call us today at (623) 432-1309 for all your financing concerns.

For many years, Veterans Affairs (VA) loans have become the talk of the town among most American home buyers and for all the right reasons. Mostly known for their zero down payment offers and agreeable interest rates, VA loans have established themselves as valuable financing options for every individual in service. In recent years, this financial solution’s scope has become more widespread, thanks to the various legislation enacted!

Although the VA loan is highly sought after and beneficial for anyone looking to purchase a home, it’s worth noting that it’s also no stranger to having a fair share of myths surrounding it. Unfortunately, the same misconceptions have thwarted the attempts of many to own a home without much difficulty because of the rumors about these loans that have spread among military circles.

What Are VA loans?

Offered by lenders—such as Desert Springs Mortgage—to veterans, reservists, active-duty personnel, and surviving spouses of veterans, VA home loans are forms of financial assistance built on military entitlement. As a beneficial alternative to the traditional home loan, anyone who is actively serving or was in service can experience an easier process with lower interest rates.

Debunking Common VA Loan Myths

At this point, it’s worth acknowledging the fact that there are many misconceptions surrounding VA loans that can pose a minor inconvenience or significantly affect one’s application process. However, you won’t have to be another victim of pure speculation because we will debunk three common misconceptions for you:

1. Only those who have engaged in combat are eligible to apply. Often, many service members have put off the idea of getting a VA loan because they believe that only combat veterans are eligible for enjoying its benefits, but this is actually the opposite. When it comes to eligibility, veterans, active-duty service members, National Guard members, surviving spouses, and other individuals are eligible to apply for the form of financial assistance in question. To further solidify the fact that you don’t need to have been involved in the frontlines to be eligible for this type of loan, here’s a complete list of eligible applicants:
   • Military veteran
   • Active-duty service members
   • Reservist or National Guard member
   • Surviving spouse who did not remarry
   • Academy cadet or midshipman
   • National Oceanic and Atmospheric Administration (NOAA) officer
   • Public Health Service (PHS) Officer
2. You need a picture-perfect credit score to apply. While each lender has a different stand on what score constitutes eligibility for a VA loan, the general consensus is that a minimal 620 score is enough to qualify. Considering that the average score (which is essentially achieved without the need for much maintenance or cutthroat saving) is 737, the minimum desired score isn’t too hard to achieve!
3. You can only get it once. The one special aspect about VA loans is that being eligible means that you can apply for them and use them to finance your home for life. Whether you’re moving up or sizing down, having a no-frills experience with the financial tool in question is something that you can enjoy over and over again. In fact, some wise borrowers have used it multiple times once, while others refinanced their mortgages or cashed out with their home’s equity through the use of this loan!

VA Loans Expert in Phoenix: Desert Springs Mortgage

Among the different things that you need to know about getting a Veterans Affairs loan, one of the more pertinent causes for concern to watch out for is the various myths surrounding them. Thankfully, keeping this guide in mind will allow you to remain clear-headed so that you can maximize the opportunities at hand without any worries in the way!

We are a mortgage company in Phoenix that offers the best mortgage options. If you are looking for reliable refinancing solutions, we’ve also got you covered with the best options available. Give us a call at (623) 432-1309 for a free home refinance analysis!

Here’s one surprising fact that should startle anyone who has served the United States: While there are 21 million Veterans and Service members that live in America, only six percent of them have bought a home using Veterans Affairs (VA) home loan in the past five years.

The main takeaway is that not enough men and women who have served (or are currently serving) are reaping the benefits of their hard work and sacrifices. Considering that six percent is an extremely small number (less than 1.3 million), the chances are that you’re also in this demographic that’s paying more for a house or property than you should be!

What should you know about VA loans?

The main reason most veterans and people in service end up bypassing the program in question is that they don’t know enough about it. In fact, some lenders contribute to this problem by not educating eligible applicants about it (or simply don’t know enough themselves), something that we’re trying to prevent with this guide.

If you’re a veteran or service member who is still unaware of what the VA home loan is or why you should start using it to your advantage, here’s a guide on everything you should know:

The biggest benefit of it all

The VA loan is something that forward-thinking homebuyers and non-veterans desire above all else because it doesn’t require a down payment or mortgage insurance. Through the help of this convenient system, you’ll be able to immediately purchase your home without holding the opportunity off to save up for steep fees and a rather hefty down payment—boosting your buying power, in the process!

What is the process like?

Even though many veterans and active-duty personnel stray away from getting VA loans because they expect a troublesome process to balance out the non-existent DP and mortgage insurance, this isn’t exactly the case.

Typically, application processes for VA loans are straightforward: all they really involve is a bit of paperwork, some verification, and everything else will fall in without needing extra paperwork or lengthy processing times. For example, applying at Desert Springs Mortgage will only take a few hours and a bit of pre-application processing before you get approved since modern systems have made room for more convenient experiences!

Free-flowing benefits

While there are many different things that you need to know about Veterans Affairs loans, the most prominent one to take note of is that you can use them over and over again.

In essence, VA home loans are made as available as possible to veterans and service members throughout their lifetimes with unlimited uses, far from the one-and-done experience people expect. In some cases, as a matter of fact, this same financial tool can be used for multiple properties simultaneously without any form of compromise or legal loopholes!

VA Loans Expert in Phoenix

Even though the idea of using a VA loan can seem rather intimidating at first, it’s important to understand that knowing the basics will help clear things up and ensure that you don’t have anything to worry about. If you’re a veteran or active-duty service member that’s looking to purchase a new property soon, take this as a sign to get the loan in question ASAP!

We are a mortgage company in Phoenix that offers the best alternatives for mortgage payments. If you are looking for reliable refinancing solutions, we’ve also got you covered with the best options available. Give us a call today at (623) 432-1309 for a free home refinance analysis!