VA Mortgage in St. Louis, MO
By: Tim Whitmire with First Integrity Mortgage Services in St. Louis
I want to start with thanking our veterans and those who currently serve our country in the military. The VA mortgage, in my opinion, is the best mortgage program in the industry as it should be. It’s a benefit that has is earned by serving our country.
When most think of the VA mortgage, they think of 100% financing with no mortgage insurance (PMI). These are two significant benefits of a VA mortgage, but they aren’t the only two benefits. Interest rates on VA mortgages are lower than competing conventional mortgages, and a VA mortgage is still a great option even when making a down payment.
Even though VA Loan doesn’t charge mortgage insurance, they still have a substantial up-front fee called the VA funding fee. This up-front funding fee is a genuine fee, but it’s typically rolled into the loan and doesn’t increase the amount of out of pocket cash needed to close. The amount of this funding fee varies depending on your level of service, whether it’s the first use or subsequent use, and how much the buyer’s down payment is. VA’s funding fee may be waived if the buyer has a service related disability.
The funding fee is its highest when making no down payment and obtaining 100% financing. Making as little as a 5% down payment significantly reduces this fee. Making a 10% down payment reduces the fee even further.
Conventional mortgages generally do not have an upfront fee similar to VA’s funding fee. Furthermore, if the buyer can make a 20% down payment, conventional mortgages also have no mortgage insurance (PMI). Therefore, many consumers and loan officers automatically default to a conventional mortgage without even considering a VA loan when the borrower makes at least a 20% down payment.
Although it is true that there are less up-front fees for a conventional mortgage than a VA mortgage, the interest rates for a VA mortgage are so much lower than a conventional mortgage that most of the time a borrower can save significantly more money with a VA loan over the life of the loan. VA mortgages also allow borrowers to obtain more of their home’s equity with a cash-out refinance than a borrower otherwise could with an FHA or conventional mortgage.
Whether you are looking to purchase or refinance a home and regardless of how much down payment you are making or how much equity you have in your home, veterans should always give VA mortgages consideration when financing a home. After all, it’s an earned benefit. I find that VA mortgages almost always provide a valuable option.
We have full underwriting authority for VA loans at First Integrity Mortgage Services, and we love serving members of our military and veterans. We’ve helped our heroes close on homes even as they’ve been deployed, via video conference! We also waive our standard commitment fee for veterans.
We would love to earn your business! Check out our reviews on Google, visit our website at www.firstintegrity.com, and call First Integrity today at (314) 878-7900.
Call Tim Whitmire today at (314) 402-8184 or email at timw@firstintegrity.com, NMLS# 279207. Apply online at www.firstintegrity.com. We would love to earn your business!