VA loan is a popular loan program in America with more than 14 million current and ex military personnel leveraging from its benefits. It is a type of mortgage guaranteed by the United States Department of Veterans Affairs and is only accessible to veterans and active members of the US military and their surviving spouses. In addition, the loan can be refinanced and offers relaxed credit requirement for the same, allowing many homeowners suffering from financial crunch to refinance their mortgage.
Benefits of Refinancing VA Loan
- Limit for refinance with VA loans is up to 90 percent, which is is higher than most conventional loan limits
- Refinancing do not require any PMI with VA loan
- No payment penalties
- Easier Refinancing due to relaxed credit guidelines
- Quick loan provision for veterans facing financial difficulty
- Ability to convert the VA funding fee into the refinance amount
2015 VA Loan Limit
As opposed to conventional loans, VA loan provides huge loan without charging its borrowers any extra. A VA buyer, for instance, can borrow up to $350,000 with no down payment, which means a U.S. home sold for $350,000 or less can be financed 100%. Nevertheless, this is just a case of minimum limit, in certain parts of US, VA loan limit may go much higher.
According to the National Association of REALTORS, the average sales price in the last month of the year 2014 for a single family home was $255,800. Yet it is out of question to find a home in New York City, California, and in San Francisco, for even two or three times of that amount. In order to help military personnel borrow loan in such expensive cities, the Department of Veterans Affairs extends its maximum loan limits such cities in which costs are on higher side. For the year 2015 the VA loan limit tops the chart at $721, 050 for home buyers in Honolulu, Hawaii.
How to do it the Right Way
You may think of VA loan to be a time consuming and confusing practice, but finding the right VA loan service provider can help you streamline the process in the right order making things easier. Choose a VA Loan service provider that provide quick and easy refinance services with a VA loan, is a trustworthy name in the market and allow you to follow the progress of your loan from the comfort of your home. Hence to sum up we can say that, these increment in the limits have enabled VA-eligible buyers buy homes under VA loan program.