VA Home Loans

Advantages of VA loans:
•You can choose 100 percent financing for the purchase of a 1-4 unit primary residence with no down payment
•You can take advantage of more favorable income, debt and credit qualifications
•The seller can pay most loan costs as part of the purchase agreement up to 4% of the reasonable value of the property
•You have the option to choose a fixed or adjustable interest rate
•Devon bank underwrites its own VA loans
•There is no penalty for prepaying your VA loan
•No monthly mortgage insurance payments
What you’ll need to consider:
•VA mortgage loan amount up to $1 million is available with equity and/or down payment; ask your loan officer for more details.
•You don’t need cash reserves for a maximum loan amount of $417,000 (in designated areas), but two months cash reserves are required for loans greater than this amount
•Loans are available for purchases of primary residences only; however, if the veteran previously occupied their investment property, it would be eligible for the Interest Rate Reduction Refinancing Loan (IRRRL)
•Temporary interest rate buy-downs are available
•There is a required guarantee fee (funding fee) which may be financed
•100% financing will result in no equity until such time as the loan principal is paid down through regular mortgage payments and/or the property value appreciates.  Additionally, if property values decline you could owe more than your property’s value.  A down payment may be required if property is located in a declining market or if required by state regulations.