Louisville Kentucky VA Mortgage

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Louisville Kentucky VA home mortgage loans offer many benefits to qualified veterans.  Did you know that since 1944, when home loan guarantees were part of the original GI Bill, the Veterans Administration has guaranteed over 18 million home loans totaling more than $911 Billion?  Loans are available for purchasing or refinancing a home.  Here are a few of the Louisville Kentucky VA mortgages being offered to qualified veterans today.

Benefits of Louisville Kentucky VA Home Mortgage Loans

VA Home Purchase Loans – Zero Down Payment

This Louisville Kentucky VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence with zero money down towards the sale price of the home, providing the sale price does not exceed the appraised value of the home. Closing costs can be negotiated and paid by the seller. Other benefits to the Louisville Kentucky VA home purchase loan are: Loans are assumable; closing costs are limited by the Veterans Administration, making sure the costs are fair; the VA is behind you with additional assistance if you ever have a problem making your loan payments; veterans can prepay their home loan without a penalty; the VA benefit is not limited to first time veteran homebuyers, veterans may reuse his or her benefit again; and private mortgage insurance is not required on the loan.

Louisville Kentucky VA Refinance Loans Available

Louisville Kentucky Conventional loan to Louisville Kentucky VA refinanceIf you qualify for a Louisville Kentucky VA loan but do not currently have one, you can now refinance your current existing mortgage to a VA home mortgage loan. The fee for refinancing your conventional mortgage to a VA mortgage is currently 2.51% for veterans who are first-time users.  You can benefit by a possibly lower interest rate than what you currently have, and there is no monthly mortgage insurance or out of pocket closing costs on the new Louisville Kentucky VA loan. Many lenders offer Louisville Kentucky VA home mortgage loans and rates will vary, so shop the rate with several lenders to see if the current low rates being offered on these loans today can benefit you.

VA Streamline Refinance – This loan is for current veterans who have an existing VA loan and wish to lower their interest rate. These loans are sometimes referred to as “Interest Rate Reduction Refinancing”.  Being one of the most popular VA loans, veterans often choose this loan program because Louisville Kentucky  mortgage rates are low for those who want to streamline a Louisville Kentucky mortgage refinance.  It’s called a streamline refinance due to having no out of pocket costs, no required appraisal and no income or credit check is needed to qualify.  Reason being, veteran borrowers have already qualified when obtaining their current mortgage that they now wish to refinance, which make these loans close faster due to less documentation.

Louisville Kentucky VA Cash Out Refinance – Veterans in need of utilizing the equity in their homes to gain cash proceeds for any number of reasons can qualify for the VA cash out refinance loan.  This loan allows for an amount up to 90% of the home’s value.  No out of pocket closing costs and no monthly mortgage insurance is required.

VA Home Mortgage Loans: Help for Borrowers in Delinquency

VA home mortgage loans offer help and advice for borrowers that have become delinquent in their VA mortgages.  The Department of Veterans Affairs announced recently some general guidance for borrowers who may be encountering difficulties.

Advice from the US Department of Veterans Affairs

The DVA announced in February 2011 that “They are urging all veterans who may be encountering problems with making their mortgage payments to speak with their servicers as soon as possible to explore options to avoid foreclosure.  Contrary to popular belief, servicers really do not want to foreclose on the loans, due to foreclosure actions being highly costly.”

Possible Options from VA Loan Servicers

Depending on the veteran’s specific situation, servicers may offer any of the following options to avoid foreclosure for VA borrowers in default on their loans:

Repayment Plan – The borrower makes regular installment payments each month plus part of the missed installment payment(s).

Special Forbearance – When the servicer agrees not to initiate foreclosure actions allowing time for borrowers to repay the missed loan installments. For example: when a borrower is waiting for a tax refund that enables them to make up the missed payments, and commits to bringing the loan current upon receiving the tax refund.

Loan Modification – This provides the borrower a fresh start, adding the delinquency amount to the home mortgage loans balance and establishing a new payment schedule.

Additional time to arrange a private sale – The servicer agrees to delay foreclosure, to allow time for a sale on the home to close and paying the loan off with sale proceeds.

Short Sale – When the servicer agrees to allow a borrower to sell his/her home for a predetermined lesser amount than what is currently required to pay off the loan.

Deed-in-Lieu of ForeclosureBorrower(s) voluntarily agrees to deed the property to the servicer instead of going through a lengthy and costly foreclosure process.

Service Members Civil Relief Act (SCRA)

Pursuant to the SCRA veteran borrowers may be able to request relief.  The intention of SCRA is to ease the economic and legal burdens on military personnel during their active service.  To qualify for certain protections available under the act, veteran borrowers must request protection under the Act; and the loan must have originated prior to the current period of active military service.  SCRA may provide borrowers lower interest mortgage rates; prevent foreclosure or eviction up to nine months from the period of military service.

Assistance for Veterans with VA Guaranteed Home Loans

If a VA guaranteed home loan becomes delinquent, VA can help by providing supplemental servicing assistance to help resolve the default. Loan servicers have the primary responsibility of servicing the loan to cure the default. However, in cases where the loan servicer is unable to help the veteran borrower, Loan Guaranty has loan technicians in 8 Regional Loan Centers and 2 special servicing centers who will take an active role in interceding with the original loan servicer in exploring all options to avoid foreclosure.

The US Department of Veterans Affairs also offers assistance to those veterans with non-VA Guaranteed Home Loans, and for homeless veterans.   For veteran borrowers that VA is not able to help, the HOPE NOW Alliance may be of assistance; this is a joint alliance of servicers, counselors and investors who all have the same goal, to assist distressed borrowers in retaining their homes and avoid foreclosure.

For Borrowers who have delinquent Louisville Kentucky VA home mortgage loans and need assistance, the DVA can be good source for help.

There are considerable advantages to the VA loan programs available to qualified veterans today.  We’re mortgage.org and we help assist veterans every day in finding the right home mortgage loansthat work for them, and we can help you too.  Contact us today!