VA loans and mortgage insurance

Are you in the market for a mortgage for your home?  […]

VA loans and mortgage insurance

Posted on: November 27, 2020

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Are you in the market for a mortgage for your home?  You might want to consider getting a VA loan.

Why should I think about getting a VA mortgage?

Did you know that you can get a VA-backed loan with no down payment? If the home price is higher than the appraised value of the property, you don't have to pay a down payment.  VA loans also offer better interest rates and better terms than the other conventional loans.

Another good thing about VA loans is that you do not need to pay for mortgage insurance premiums (MIP) or even private mortgage insurance (PMI).  Conventional loans require you, the borrower, a PMI, especially if you put in a downpayment of less than 20% of your mortgage amount.

When you close, expect a lesser amount to pay when you get approved for a VA loan.  And if you pay off your loan earlier,  there is no penalty that you need to pay.

When I qualify, where can I use a VA loan?

To know if you are eligible for a VA loan, you need to apply for a Certificate of Eligibility (COE). You can apply online or through mail. The COE is important because this tells the lender that you have met the minimum requirements to avail of the VA loan benefit.

Now that you have your COE, here's how you can use the loan:
  • When you build a new home
  • Buy a home and improve on it
  • A condo that is part of a VA-approved project
  • A single-family home
  • If you plan on making a home improvement that will make your home more energy efficient like installing green energy like solar panels.

You can ask us how you can avail of the VA loan mortgage and how we can assist you in doing so. Did you know that you can also assume a VA loan?  There are other options, so let us know how we can help you.

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