What is a VA Loan?
A VA Loan is Designed to offer long-term financing to veterans. VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. Assurance Financial is honored to be able to offer outstanding rates on Birmingham and Tuscaloosa VA loans.
What can VA Loans be used for?
A Birmingham or Tuscaloosa VA loan can be used for purchasing an existing or new home, refinancing the current VA loan, and streamline (interest rate reduction) loans. Cash out refinances can be used for Birmingham or Tuscaloosa VA loans to assist in debt consolidation or home improvements. Interest Rate Reduction loans (IRRL) can help in lowering the monthly payment by decreasing the interest rate on the current mortgage. It can also be used to lower the term (years) of the current VA loan.
A Birmingham or Tuscaloosa VA loan offers better credit requirements and 100% financing options. Borrowers eligible for financing do not have to have a down payment. They are great for first time buyers in Birmingham and Tuscaloosa Alabama.
VA Loan Requirements:
- Income requirements: Va loans follow a buyers residual income instead of focusing just on debt to income ratios. The residual income takes into account take home pay instead of gross pay. It also looks at maintenance cost of the new home.
- Down Payment: There is typically not a down payment for this loan type.
- Credit Score: The minimum middle credit score must be at least 620 on all VA loans with Assurance Financial.
- Property Requirements: All homes purchased with a VA loan in Birmingham or Tuscaloosa must follow specific criteria set by VA. They also require all VA loans to use their hand picked appraiser that may or may not be on Assurance Financial’s list.
No Monthly Premium Fees
Another big difference in Birmingham and Tuscaloosa VA loans is that there is only one set premium for the commitment fee in place of mortgage insurance. It is determined by the status of the veteran (buyer) in the military branches. A typical reuse fee will be 3.3% of the base loan amount that can be added onto the balance of the loan. VA loans do not have a monthly premium like FHA and USDA does.
Working with a Qualified Lender
At Assurance Financial we are devoted to helping our borrowers with all of their Birmingham and Tuscaloosa Alabama home loans. If you are purchasing your first home or looking to refinance an existing VA mortgage, we would love to assist in the process. Contact me, Ransom Kelly (205-624-0484), today for any questions you have on any Birmingham or Tuscaloosa VA loans.