Located within its namesake Greenville County is home to Greenville, South Carolina. Greenville was officially incorporated in 1831 but was settled decades prior. Today, Greenville is home to around 70,000 residents with a median income of approximately $45,000. One of the most visited venues is the Greenville County Museum of Art. For those who enjoy the outdoors, Greenville certainly has its fair share of things to do in the Great Outdoors such as Falls Park on the Reedy and Paris Mountain State Park.
Greenville has become very popular lately as indicated by the local real estate market. Recent median home prices in Greenville recently popped up above the $200,000 mark. Of course, higher home prices affect first-time buyers more than others who already own homes, but the $200,000 mark is still very affordable. Home loan options in Greenville are plenty but for first-time buyers who want to come to the closing table with as little as possible, the best option is the VA home loan for those who are eligible for this attractive program.
The VA home loan was first introduced as a component of the original G.I. Bill back in 1944. These various programs were designed to help servicemen returning from WWII get tuition assistance to attend college or trade school, start a business and to buy and finance a home with no down payment. If you’re searching for a low down payment loan, there’s nothing lower than zero.
However, there are certain eligibility requirements and not everyone can access the VA home loan program. Those that are eligible however are veterans of the armed forces, National Guard and Armed Forces Reserve members with at least six years of service, active duty personnel with at least 181 days of service and unremarried, surviving spouses of those who died while serving or as a result of a service-related injury.
VA eligibility is verified with a copy of the applicant’s Certificate of Eligibility. This certificate is provided by the Department of Veteran’s Affairs and can be provided upon request. There is no fee for this request. For someone that is not sure if they’re eligible, they can find out on their own by visiting the nearest regional VA center or mailing or faxing the request personally. Yet the most convenient way to obtain this certification is by letting your loan officer make the request for you. VA approved lenders like Coast 2 Coast have access to the Automated Certificate of Eligibility or “ACE” When the lender makes the request, the certificate is obtained almost instantly.
Another money-saving feature with this program restricts certain types of closing costs the veteran can pay. Allowable closing costs include charges for an appraisal and credit report. Title insurance charges are also considered an “allowable” fee, so too are origination charges, recording and survey fees. Any other fees such as an attorney or loan processing fee may not be paid for by the veteran. With a VA loan, the sellers can pay the non-allowable fees, or the lender can adjust the rate on the program and provide the veteran with a closing cost credit at the settlement table.
The VA home loan program does carry a loan guarantee to the lender. Should a VA home loan ever go into default, the lender is compensated at 25% of the loss. However, a default on a VA loan is pretty rare and they are some of the highest performing of any loan program in today’s marketplace.
Learn more about how to apply for a VA loan here.
The guarantee is financed by the Funding Fee. The funding fee works like an insurance policy. This fee can vary based upon how many times someone has used the VA loan program, (yes, the VA home loan benefit is not a one-time offering), and the nature of the borrower. For a traditional zero-down 30 year mortgage, the veteran can expect a funding fee for first-time use of 2.3 percent of the sales price of the home. For a $200,000 home, that amounts to $4,600. Because the funding fee is rolled into the loan amount, the veteran doesn’t pay this fee out of pocket. Using this example, the final loan amount is $204,600 and the monthly payments are based upon this amount, not the original base amount.
Another advantage first time home buyers will discover is that there isn’t an additional monthly mortgage insurance premium payment or PMI. This helps buyers qualify for a larger loan than they otherwise would have.
First-time buyers who take advantage of all that’s offered with the VA loan program also find VA loans come with a healthy choice of loan options like common fixed or adjustable rates. Loan terms for VA loans can range anywhere from 10 to 30 years in five year increments. For those that want the lowest payment possible while increasing buying power will choose the 30 year loan. For those that want to save on interest paid, shorter-term loans like a 15-year fix can accommodate. Shorter loan terms will have higher payments, but the amount of interest saved is significant.
A fixed rate loan means the rate will never change. An adjustable rate can and will change at some point over time but only under a predetermined set of guidelines built into the note. Most VA adjustable programs come in the form of a hybrid. A hybrid is so-called because it acts like a fixed as well as an adjustable rate mortgage. A hybrid will have an initial fixed period such as three or seven years before it turns into a loan that can adjust every six months or a year.
The VA loan program is perhaps the most attractive loan program for qualifying home buyers that want 100% financing, competitive rates, limited closing costs and no monthly mortgage insurance payment. Our loan local loan specialist are happy to review all the details with you over the phone 7 days a week. Just call us at the number above or submit the Quick Request form on this page.