VA Mortgage Insurance

 Why choose a VA Mortgage?

• VA Mortgages require a Low 3% down payment.
• Non-occupant, co-borrower are permitted for qualifying for an VA Mortgage.
• VA Mortgage Loans use Expanded qualifying ratios.
• There are no prepayment penalties for an VA Mortgage.
• A VA Mortgage is fully assumable.
• VA Mortgages have lower MI premiums.
• A VA Home Loan is eligible for non-credit qualifying, Streamline Refinance or "IRRRL".
• A VA Mortgage is available all areas of the country, provided a market exists for the property and the home meets VA's property standards.
• A VA Home Loan may be used to purchase or refinance a new or existing home.
• VA Mortgages are offered at terms of 15 or 30 years.

 What types of VA Mortgages are available?

Fixed Rate Mortgage
Most VA mortgages are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same for the entire loan period. With a fixed rate VA Mortgage, you always know exactly how much your monthly payment will be.

Adjustable Rate Mortgage
With VA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. VA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT), the most widely used index, to calculate the changes in interest rates.

The maximum amount that the interest rate that an ARM VA Mortgage may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM that is chosen. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points over the initial interest rate.