Regency Mortgage Corp. – Helping Vets Realize Their Dream of Homeownership
With all the sacrifices our soldiers and their families
have to endure, it is nice to see that one of the oldest VA Benefits is still
in effect today, the VA loan. The VA
home loan guaranty was established in 1944 right after WWI and was designed to
help veterans become homeowners after the war.
Although this program has been around for a long time, it wasn’t until
after the mortgage meltdown in 2006 that people started to take a renewed
interest in this program. This was due
in part to the fact that prior to 2006, there was an abundant supply of alternative
mortgage loan programs out there that enabled borrowers to obtain mortgages
with no money down and, in some cases, no income and asset documentation. Many
borrowers were attracted to these programs due to the ease of underwriting. Some mortgage companies were attracted to
these programs, not only for the ease of underwriting, but also because these
loans were more profitable. As a result,
many borrowers who could have qualified for a VA loan, ended up taking a mortgage
loan with less than favorable terms, sometimes referred to as an “exotic loan”.
Since 2006 there has been an extreme tightening of
lending guidelines that make it tougher for many prospective borrowers to
qualify for Conventional financing. Down
payment requirements have been increased for many programs. Credit scores need to be higher. Borrowers must have money in the bank after
closing – imagine that!
A VA Loan offers significant benefits to help Vets
realize their dream of homeownership.
Benefits of a
VA Loan:
- No monthly mortgage insurance required!
- No down payment is required!
- Seller can pay 100% of borrower’s non-recurring closing costs!
- Seller can pay up to 4% of the value of home towards pre-paid expenses and funding fee!
In addition to the above benefits, VA credit score requirements are less stringent than Conventional financing. The best part is that the interest rates on VA loans are the same, and sometimes BETTER than Conventional Financing!
The good news for Veterans looking to purchase or
refinance, or for Realtors who are working with a Vet home buyer… Regency
Mortgage Corp. offers VA Loans for either purchase or refinance. In addition, we have an expert team of seasoned
VA underwriters on staff who will work closely with our borrowers to ensure all
of their questions are answered. It is our
number one priority to provide a seamless loan transaction.
Veterans are increasingly becoming part of the home
buying market. If you are currently
working with a VA homebuyer, be sure to give them my name. You and your client will be glad you did!
Call Ed Harrigan – Mortgage Planner
Regency Mortgage Corp.
Ph 603.447.6060
