AZ Veterans Loans
Veterans, Active Duty Military & Military Reservist often receive a benefit from the Veteran's Administration that allows them to purchase a home with no down payment. There is a VA Funding Fee that is a type of mortgage insurance used by the Veteran's Administration to fund this VA Mortgage benefit. Below I will describe in detail, the VA Home Loan Approval Guidelines, VA Funding Fee, and other Miscellaneous closing Costs associated with a VA Purchase Mortgage, a VA IRRRL Streamline Refinance, and a VA Cash Out Refi. I will also provide VA Home Buyer resources, including Websites and Phone Numbers.
VA Purchase Mortgage
The Veterans, Active Duty Military and Military Reservists can purchase a home with a Veterans VA Loan in AZ up to $424,100. as long as a veteran still has their full entitlement. If a Veteran does not have full entitlement, he/she may still be eligible for a VA loan that is 4 times the remaining entitlement. Either the Veteran or the Lender can contact the Veterans Administration to obtain a copy of the Veteran's Certificate of Eligibility, (COE).
VA IRRRL Streamline Refinance
The IRRRL Streamline refinance allows an existing VA borrower to reduce their interest rate or mortgage term, without having to verify income, assets or property value. No Income or assets are listed on 1003, but the borrower's employment and job title are entered. Employment is verbally verified, but no income figures are required. Also, no property appraisal is required. The value used is based on the prior loan amount. Note a VA Certificate of Eligibility, (COE) is not required for a IRRRL, nor is an Appraisal or AVM. We only need a copy of a Veteran's current VA Mortgage Note to Payoff the existing loan, and we also need a new Title Report to ensure the old note is paid off, recorded and released. The new note also will be recorded.
An IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan. Generally, no appraisal, credit information or underwriting is required on an IRRRL, so the loan can close in less than 30 days.
VA IRRRL Product Highlights
- No minimum FICO credit score required if no late payments in past 6 months†
- No income documentation required*
- Condos must be VA approved and meet all requirements
- Loan programs available: 30, 25, 20, and 15 year fixed
† Applicable only for FHA Streamlines and VA IRRRL's with no late payments for 6 months.
*Only applies if monthly principal & interest payment does not increase 20% or more. Verbal verification of income source is required.
VA Cash Out Refinance
Veterans VA Cash Out refinance Loans in AZ .are underwritten like a VA purchase loans and requires the same documentation required, as when purchasing a home with a VA loan. These Items include: Two recent consecutive pay stubs, 2 most recent years' W2's and/or 1040 Tax Returns, Two most recent bank and investment account statements with all pages, current mortgage statement, homeowner's insurance Dec Page, copy of (COE) "Certificate of Eligibility" & DD214.
VA Funding FeeVeteran or Active Duty 1st Time User Funding Fee 2.15%
Veteran or Active Duty Subsequent User Funding Fee 3.30%
Reservist 1st Time User Funding Fee 2.40%
Reservist Subsequent User Funding Fee 3.30%
Streamline Refinance IRRRL Funding Fee 0.50%
Veterans Receiving Disability Comp VA Funding Fee Waived
VA Certificate of Eligibility - COE
Veterans may also apply for a COE online at www.ebenefits.va.gov. The lender may rely on a COE as proof the veteran is eligible for the home loan benefit. Although eligible for the home loan benefit, veterans must still qualify for the VA Mortgage, based on income and credit, before loan approval is granted.
If a veteran previously used their entitlement, and it has not yet been restored, the available entitlement is reduced by the amount used on the prior loan(s). The veteran can also apply for restoration of their previously used entitlement.
Form (DD-214), the "Certificate of Release or Discharge From Active Duty," contains all the information needed for the VA to make an eligibility determination for persons who served in a regular component of the Armed Forces.
Active Duty Veterans should request a "Statements of Service," on military letterhead. The statement of service must clearly show: • the veteran’s full name, • the veteran's Social Security Number (SSN), or the last 4 digits of SSN, • the entry date on active duty, • the duration of lost time, if any, and • the name of the command providing the statement.
Typically, all members of the Military Reserves and/or Guard receive an annual retirement points summary which indicates the level and length of participation. The applicant should submit the latest such statement received, along with evidence of honorable service.
VA Cash Out refinance Loans in AZ .are underwritten like a VA purchase loans and requires the same documentation required, as when purchasing a home with a VA loan. These Items include: Two recent consecutive pay stubs, 2 most recent years' W2's and/or 1040 Tax Returns, Two most recent bank and investment account statements with all pages, current mortgage statement, homeowner's insurance Dec Page, copy of (COE) "Certificate of Eligibility" & DD214.
Using our online loan application, you can take your time and complete your mortgage application whenever it's convenient for you. And, you can always save your work and come back and complete it later if you need to.