SELLING HOUSES IN SOUTHERN INDIANA  

Purchase with $0 Down

A VA Loan is one of the only loan programs that still allow the borrower to finance 100% of the home's value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In many cases they require 3.5-20% down, putting home ownership out of reach for many prospective buyers. There is no maximum VA loan but lenders will generally limit VA loans to $417,000.

Lower Your Monthly Payment

 VA Loan offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.

Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment as illustrated in the chart below...

VA Loan - Estimated Monthly Payment Savings

Loan Amount

1.0% Rate Reduction

PMI Savings

Est. Monthly Savings

$150,000

$94

$115

$209

$250,000

$156

$191

$347

$350,000

$220

$268

$488

$450,000

$282

$345

$627

*Estimates based the borrower putting $0 down with a 1.0% interest rate deduction.

Before you start the loan process, you'll need to have some information at hand for all loan applicants:

  1. Social Security numbers
  2. Residence addresses for the past two years
  3. Names and addresses of your employers over past two years
  4. Your current gross monthly salary
  5. Names, addresses, account numbers and balances on all checking and savings accounts
  6. Names, addresses, account numbers, balances and monthly payments on all open loans
  7. Addresses and loan information of other real estate owned
  8. Estimated value of furniture and personal property
  9. Certificate of Eligibility and DD214, (for veterans only)
  10. W2's for the past two years and current check stubs
  11. For self-employed individuals, you will need to provide personal tax returns for the past two years, current income statement and balance sheet for the business




 
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