Money saving benefits are available to Servicemembers and Veterans with disabilities who are house shopping or interested in refinancing. In this blog, you will learn what these benefits are. We will share our favorite resource to help determine if you qualify for disability benefits that could save you serious money on a home purchase. Even if refinancing with an IRRRL (Interest Rate Reduction Refinancing Loan) is your goal, disability benefits can help. Let’s look at some numbers first.
Money Saving Benefits
Buying a home with a VA loan typically requires a funding fee of between 1.25% and 2.15%. This fee varies with the downpayment. However, for Veterans with a disability rating of 10% or greater, the funding fee is waived. Look at these savings:
- For a $250,000 VA home loan, the 2.15% funding fee would be $5,375.
- The funding fee increases to 3.3% or $8,250 the second time a Veteran purchases a home with a VA Loan.
- This fee can be eliminated with 10% disability rating or higher.
In addition to saving mad money, VA backed loans often require no downpayment and save you from paying Private Mortgage Insurance as well. In addition, VA backed loans have lower interest rates. Let’s recap these benefits. For a $250,000 home, disability benefits combined with the benefits of a VA backed loan would save the Veteran between $12,500-$50,000 on a down payment, thousands on the funding fee, nearly $200 a month on PMI, and reduce the interest rate. The savings speak for themselves!
Qualifying for Money Saving Benefits
To our Veterans who haven’t applied for these money saving benefits, this section is for you! Do you think you might qualify? Specializing in VA home loans, we find that many Veterans who are entitled to VA disability are unaware. We’d like to help with this. The first step is to contact an accredited Veterans Service Officer. Their role is to walk you through the application process and file your claim, including gathering necessary documents. Their service is free and we will be happy to make introductions for you!
When to Talk to a VA Specialized Lender
Above all, we believe that the best businesses help their clients find the resources they need. Therefore we invite you to call our VA Benefits Team so that we can introduce you to a VSO. Once they establish your eligibility we will maximize your benefits to save you serious, mad money on your VA loan! We welcome you to follow us on Facebook, Twitter and Google+ where we share original blogs on topics that affect you. Our mission for 2017 is to donate $25,000 to organizations who help our Veterans. Stay tuned to social media to follow our progress!
At VALG we know the more value we can create for you, the more successful we and our community will be. We cordially invite you to call our VA Benefits Team so that we can introduce you to a Veterans Service Officer.
We hope we have the opportunity to help you obtain these money saving benefits and earn your business on a home loan!