UTAH MORTGAGE PRODUCT

VA Loan Purchase

VA Loans play an important role in putting our brave military-serving citizens and their families into a home of their own.

Overview: VA Home Loans

Exclusive Pricing For Veterans

A VA loan is issued by a private lender and insured by the Department of Veterans Affairs. It’s a valuable benefit — offering a mortgage with a lower-than-most interest rate that usually requires no down payment — for qualified U.S. veterans, active-duty military personnel and certain surviving spouses.

Although the VA has no minimum credit score requirement, most wholesalers require scores of at least 620. A few lenders will approve loans with credit scores as low as 580 in some cases. The VA takes a real-life view of affordability by estimating the ability to pay the home loan after accounting for other monthly expenses.

The main benefits of an VA loan are:

Zero Down Payment. VA Loans are one of the only 0% down home loans for qualified borrowers available on the market
No PMI. VA Loans are government backed, so wholesalers do not require you to buy Private Mortgage Insurance
VA guaranty gives us lenders a greater degree of safety and flexibility. Typically giving you lower & more competitive rates

ARM VS. fixed: Which should I choose?

A fixed-rate mortgage has the same interest rate through entirety of the loan. Your monthly payment of P&I (principal and interest) won’t change. A fixed-rate mortgage is one of the most popular types of financing because it offers stability and predictability for most peoples budget.

An adjustable-rate mortgage, commonly referred to as an 'ARM', is a home loan with an interest rate that can change periodically. This means that the monthly payments can go up or down. In general, the initial interest rate is lower than that of a fixed-rate mortgage. After the fixed-rate period ends, the interest rate on an ARM loan moves based on the index it’s tied to.

When deciding if a fixed or ARM rate is right for you, there are some questions that you need to ask yourself:
1. How long do I plan on staying in the home?
If you’re only going to be living in the house for a few years, it would make sense to take the lower-rate ARM. Your payment and rate will be lower, and you can build savings for a bigger home later on. Also, you’ll never be exposed to huge rate adjustments of an ARM because you’ll be moving before the adjustable rate period begins.
2. How frequently does the ARM adjust, and when is the adjustment made?
After the initial, fixed period, most ARMs will adjust every year on the anniversary of the loan. The new rate is actually determined by the index value around 45 days before the anniversary. But some adjust as frequently as every month. If that’s too much volatility for you, it might be better to go with a fixed-rate mortgage.
3. What’s the interest rate environment like?
When rates are relatively high, ARMs can make sense because their generally lower initial rates will allow you to still reap the benefits of home ownership. When rates are lower, you have a decent chance of getting lower payments even if you don’t refinance. When rates are relatively low, however, fixed-rate mortgages make more sense.
4. Can you still afford your monthly payment if interest rates rise?
On a $150,000 sing year ARM mortgage with 2/6 caps, your 5.75 percent ARM could rise to 11.75 percent, with the monthly payment rising up as well. Generally, when fixed mortgage rates are low, fixed mortgages will tend to be a better deal than an ARM, even if you plan to stay in your home for only a few years.

How do I qualify for a VA Home Loan?

The Department of Veterans Affairs doesn’t issue the home loans; brokers & wholesalers do. But, the VA insures a portion of the loan in case of default. While a VA home loan qualifying requirements are much more relaxed than that of a conventional loan, you’ll still needs to have a decent credit score and sufficient income.

Some other major eligibility requirements include:

The home must be your primary residence.

You must have a valid certificate of eligibility from the VA.

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