New York VA Loans
Housing prices in New York have always been much higher than in other parts of the country, but for veterans they are still affordable when purchased with a VA Loan. This is because VA Loans do not require the borrower to supply a down payment on the house. Conventional loans can charge upwards of 20% for a down payment, which gets very costly for big family homes in New York. Here are some of the other great benefits of using a VA Loan to purchase or build your next home.
No Monthly Insurance
When you get a New York VA Loan, the loan is guaranteed up to 25% of the total amount of the loan. This is how much your lender receives if you default on the loan, so it is in effect the same as an insurance plan. This means you will not be required to pay any additional monthly mortgage insurance.
Low Interest Rates
As a veteran with a VA guaranteed loan, you are a very secure and desirable borrower to private lenders. Because of this, they are often willing to give you a very competitive interest rate. You may even be able to negotiate a rate that is below the current mortgage market rate.
Flexible Repayment Plans
The VA has created five different types of repayment plans that were put in place to suit individual needs and incomes. These plans are: traditional ARM, hybrid ARM, growing equity mortgage, graduated payments mortgage and traditional fixed. First time homeowners do well with the graduated payments mortgage because the payments start out very low and slowly increase overtime. A traditional ARM is great for people who like to plan ahead and refinance in the future. Be sure to discuss each plan with your lender to find one that is best for you.
Refinancing your current VA Loan is incredibly easy when done with an Interest Rate Reduction Refinancing Loan (IRRRL). The IRRRL has also been nicknamed the VA Streamline Refinance because it requires no out-of-pocket expenses or any additional paperwork. However, you will not be able to take any money out against the equity of the house. If you need cash to pay off credit cards, tuition, liens, etc., you will want to apply for a VA Cash-out refinance.
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