VA Loan

A VA Loan is a mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. VA Loans offer 30, 15-year fixed and 5/1 ARM products for purchase and refinance transactions for eligible veterans. VA also offers a IRRL Streamline product to move your ARM to a fixed with deep rate reductions.  There are many benefits to a VA loan as the chart below will share with you.  At Hippo Financial if you are veteran that was honorably discharged, have a COE, or are currently in the US Armed Forces we will do your loan with no origination, bank fee, underwriting fees, credit report fees, or title fees.  We thank you for putting your life on the line for our freedom and feel the best way to show and demonstrate our gratitude is to pitch in where we can, your home loan purchase or refinance.  May God bless and watch over you.

VA Home Loan Advantages

The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:

  • No down payment as long as the sales price doesn’t exceed the appraised value.
  • No private mortgage insurance premium requirement.
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs may be paid by the seller.
  • The lender can’t charge you a penalty fee if you pay the loan off early.
  • VA may be able to provide you some assistance if you run into difficulty making payments.

You should also know that:

  • You don’t have to be a first-time homebuyer.
  • You can reuse the benefit.
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies.

 

Interest Rate Reduction Refinance Loan (IRRL): A.K.A- Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan.

IRRL Facts

  • No appraisal or credit underwriting package is required when applying for an IRRL.
  • An IRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
  • When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
  • No lender is required to give you an IRRL, however, any VA lender of your choosing may process your application for an IRRL.
  • Veterans are strongly urged to contact several lenders because terms may vary.
  • You may NOT receive any cash from the loan proceeds.

Eligibility

An IRRL can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.

 

About the VA Home Loan Guaranty

Most VA Home Loans are handled entirely by private lenders and VA rarely gets involved in the loan approval process. VA “stands behind” the loan by guaranteeing a portion of it. If something goes wrong and you can’t make the payments anymore, the lending institution can come to us to cover any losses they might incur. The VA loan guaranty is the “insurance” that we provide the lender.

Loan fee Structure for VA-Guaranteed Loans

FIRST TIME USE                               Veteran                               Reservist/National Guard

Downpayment:

Less than 5%                                     2.15%                                                 2.40%

5% but less than 10%                      1.50%                                                 1.75%

10% or more                                     1.25%                                                 1.50%

SECOND AND SUBSEQUENT USE

Downpayment:

Less than 5%                                     3.30%                                                 3.30%

5% but less than 10%                      1.50%                                                 1.75%

10% or more                                     1.25%                                                 1.50%

REFINANCING LOANS

Interest Rate Reduction                 0.50%                                                 0.50%

ASSUMPTIONS                               0.50%                                                 0.50%