As real estate aficionados, we're constantly rubbing shoulders with industry experts who are a treasure trove of wisdom and know-how. We decided to pick their brains, throw some commonly asked questions their way, and get all deets to share with all of you. So, get ready for some behind-the-scenes peeks and pro tips!
A VA mortgage is a specialized home loan product + the process for using one is similar to any other mortgage type. VA loans are for current + veteran service members, have competitive interest rates + typically require no down payment. Here locally, it’s a common loan type so let us help you get connected!
Rod Hawkins is local Clarksville guy who grew up in our community, graduated from APSU and made his forever home here. He’s a proud husband and father of two. In the lending arena, Rod works for Legends Bank, which is a highly reputable local bank. One in which Jodi + Tara have helped clients close homes with countless times over the last 10+ years due to their stellar communication, experienced loan officers and processors, and their reliable, quality service overall. Something to remember, most companies sell that loan off by the time you get to that closing table so choosing local can streamline and make a smoother transaction for that 30-45 contract period. Then your monthly payment is sent to a different servicer.
For those of you who want to use a VA Home Loan in Clarksville, TN or the surrounding area, we have some answers for you. If there is something that you’d like to know that is not answered below, have additional questions or would like to schedule an appointment, click Connect with Rod link above.
-Current active-duty regular military service members with minimum 90days continuous service.
-Veterans who were discharged honorably.
-Reservist or National Guard members -6yrs service
-Surviving spouse of eligible veteran
The certificate of eligibility (COE) can be obtained on the VA.gov website or certified VA mortgage lender can retrieve. The COE will show the amount of entitlement available for a VA home loan.
VA doesn’t have a minimal credit score, but the mortgage service will, and the score will vary per mortgage lender. F&M minimum is 580 middle score.
30yr, 25yr, 20yr and 15yr terms are available for VA mortgage loans.
The interest rates are lower on a VA loan than a traditional conventional loan. VA loans are government insured and are typically anywhere from .25-1% lower rate.
VA requires a minimum of 2yrs full time work history with minimum gaps in employment. A college/university degree can be used as on the job experience if working in specific field of study.
There is a myth that the veteran can only use their VA home loan benefit one time. This simply isn’t true. If the veteran has paid in full their first VA loan, they have freed up 100% eligibility and are eligible for another VA loan. Also, the veteran can split their entitlement into 2 properties at the same time depending on how much entitlement was used on the first VA loan and the remaining entitlement. This amount can be formulated by the lender with a current COE. VA loans can only be used as primary residence.
That is correct, the VA loan is 100% guaranteed loan for qualified veterans, no downpayment is required. Just like any other mortgage loan there are closing cost and this cost cannot be added into the loan. Different mortgage lender will have different closing cost amounts.
The VA appraisal is ordered from the mortgage company directly from the VA. The appraisal is assigned to a licensed VA appraiser by the VA not the mortgage company. The appraisal is required to ensure the veteran is paying fair market value for the property and note any required repairs or safety issues with the house. The VA appraisal is different from a home inspection. The home inspection is a very detailed report of any issues or repairs that need to be addresses and repaired but there is no value given to the house from a home inspection report.
There is no limit on a VA loan if you have full entitlement but there are different loan limits per county. If the loan is over these limits there could be some downpayment required. Mortgage lenders have loan limits determined on income, credit, and assets.
The eligible veteran and their spouse can be on the deed and contract, or two non-married eligible veterans can split their entitlement and be on the contract and deed together. Otherwise, the VA will not allow anyone else to be on contract or deed.
No, there is no PMI on a VA home loan.
Well there you have it!! Great info for all of you looking to buy or sell a home in the Clarksville, Ft. Campbell area OR are just wanting to find a local, knowledgeable loan officer who is readily available, communicative and reliable. Feel free to share this page with family & friends as we know it is valuable information that everyone who owns a home (or is thinking about buying a home) should know! 🏡 💡