Money Matters
Expert Advice on VA Lending & Personal Finance By Phil Jawny, MIRM, CMP, CSP
Booming Housing Market Gives Military Families New Options Question: How Can Military Families Benefit from the Booming Housing Market? Answer: The U.S housing market gained close to $2.5 trillion in value in 2020 — the most significant increase since 2005. Some states saw an increase of nearly 8%, and 2021 is projecting an even higher increase. What does that mean for you as a homeowner? This increase in equity is possibly one of your most valuable assets. This year many homeowners used their equity asset by doing a refinance that allowed for cash to be taken out of the home. For those that haven’t gotten into the “Refi Boom,” rates are still extremely low and the potential savings per month on average are close to $250. That’s $3,000 a year and $90,000 over the 30-year lifetime of the mortgage – this sum of savings could fund your home repairs, vacations, investment portfolio or college savings. Owning a home allows for secure savings, especially as home values continue to increase and monthly savings compound by reducing your interest rate with a refinance. The 411 on VA Mortgage Financing Current or former military members have the opportunity to take advantage of a full suite of benefits through a VA Mortgage. With low interest rates and flexible lending guidelines, the VA Loan was specifically created to benefit the military community. Who is Eligible for a VA Loan? To be eligible, you must meet one of the conditions below: • Active duty or honorably discharged veteran • Served over six years in the National Guard or Selected Reserve • Surviving spouse of a service member who passed in active duty and spouse has not remarried
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WWW.HomelandMagazine.com / July 2021
Benefits of Using Your VA Loan Qualifying for a VA mortgage provides a host of benefits and working with a VA loan expert who understands the unique conditions around a VA loan will ensure you get the most out of your loan. The benefits are many: • May not need a down payment • No maximum loan limit *county/city loan limits do apply • Typically provides lower interest rates than Conventional or FHA financing • Lower closing costs • Qualify with lower credit scores and higher debt to income ratios than other loan types • No monthly mortgage insurance • Use your VA loan multiple times Like other traditional mortgage programs, a VA mortgage requires an underwriter to review and evaluate your income, debts, and financial and related documents. This review ensures program eligibility and protects your financial wellbeing.
