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What is the Mortgage Rate for a VA Loan?


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The mortgage rate you can qualify for depends on many factors including your credit, down payment and income. For many people a conventional loan is not an option, they have to get a VA or FHA loan. If you are looking for the best mortgage rate for a VA or FHA loan then there are a few things you should know.

There are many reasons why people may need to qualify for a lower mortgage rate. They may be facing foreclosure, want to buy a new home or refinance a home to consolidate debts. Getting a VA or FHA loan is easy if you qualify. There are a few steps you need to follow in order to qualify.

You need to make sure you have a decent credit rating. Banks and other lenders pull your credit on a regular basis. If you have bad credit or no credit history at all it can be difficult to qualify for a decent mortgage rate. Make sure you pay all of your bills on time and pay your bills off completely before applying for a loan. A good credit score will go a long way towards helping you qualify for a low interest VA or FHA loan.


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Most lenders require that you live in the home for a long time. This helps them determine your stability and whether or not you will be able to make your monthly payments. If you have bad credit or a bankruptcy on your record it can negatively impact your chances of qualifying for a VA or FHA loan. Most lenders require that you have steady employment and make sure you plan on staying in the home as your paying will likely not be a problem. Even if you do qualify make sure you understand the terms and conditions because refinancing again can result in much higher interest rates.

If your current lender does not require a VA or FHA loan you may wish to apply with a different lender. Not all companies will accept you application. It is very important that you know what your mortgage options are before applying. Most people who apply with the same lender do not end up qualifying for the best deal. Do some research online or talk to your local bank.


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Once you qualify for a VA or FHA loan you can choose from one of two types of refinancing options. Either you take an unsecured loan and roll all of your debt into one or you take a refinance that uses your existing loans funds and puts it in a new type of loan. Either option has its advantages and disadvantages. It is very important that you make sure you are fully aware of the pros and cons before making a final decision. Many people prefer the one or the other but there are benefits to both.

The advantages to a VA or FHA loan are that they give lower interest rates and government backed loans are more secure than other types of loan. Some people prefer to get a higher interest rate because their home is more valuable than the rates they would receive on an unsecured loan, but this is not always the case. If you need a large amount of money and have experienced problems paying previous home loan installments, then a VA or FHA loan might be right for you. If you have little debt and good credit you could use a traditional mortgage with a slightly higher interest rate.

The disadvantage to these types of loans is that if you choose to stop paying your loan you will lose your house. The mortgage company is required to give you thirty days notice before repossession can occur. If you are unable to make payments after this time then you should consider selling your home or refinancing to obtain a lower mortgage rate.