Tennessee VA Loans
For qualified veterans interested in buying or building a new house in Tennessee, now is a great time to do so with a VA Loan. Right now with a Tennessee VA Loan it is possible to purchase or build a new house with no down payment needed. While the down payment on a conventional loan can be as much as 20% in some cases, the VA has waved this fee so first time homeowners won’t struggle to come up with the capital. There are many other additional benefits of using a VA Loan, including no monthly mortgage insurance, flexible repayment options, easy refinancing and more.
No Private Insurance
When you go through the VA to obtain your loan, they are basically insuring it for you with a private lender. Your basic entitlement is 25% of the total loan amount which is how much the lender will receive if you default on your loan. Because of this, you are a very secure borrower and you will not be required to pay private monthly mortgage insurance.
Flexible Repayment Plans
Once you have found your house and a lender, you have five different choices when it comes to repayment options: traditional ARM, hybrid ARM, traditional fixed, graduated payments mortgage (GPM) and growing equity mortgage (GEM). Each plan is designed to suit specific needs and income levels. For example the GPM is great for first time homeowners who need the extra cash in the beginning for repairs, furniture, etc. and are willing to pay more as time goes on. A traditional ARM is great for people who like to plan ahead and refinance in the future. Be sure to discuss all your options with you lender.
Easy Refinancing
If you decide to refinance your VA Loan in the future you can choose between a VA Cash-out refinance and an Interest Rate Reduction Refinancing Loan (IRRRL). The IRRRL was designed to make refinancing as easy and affordable as possible. The VA has done this by requiring no additional paperwork or out-of-pocket expenses to refinance. With an IRRRL you can not take any cash out against the equity of your house however, and you must refinance to a lower rate than what you are currently getting.
Tennessee Metros
Get Qualified Today
Qualifying for a VA loan has never been easier than it is now. Just fill out our 1-minute quote request form and you can begin comparing rates and offers today!
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