Starkey Mortgage (WR Starkey Mortgage, LLP NMLSR #2146) is a proud supporter of our troops, and as a national lending company, they aim to help every service member or veteran achieve their dream of homeownership. The U.S. Department of Veterans Affairs (VA) offers service members, veterans and surviving spouses the opportunity to become homeowners through a unique, one-of-a-kind financing option that is partially guaranteed by the federal government.

While VA Home Loans are provided by private lenders, such as Starkey Mortgage, the VA guarantees a portion of the loan, which enables the lending party to provide the borrower with more favorable terms. These loans are available to eligible military members and their families and provide them with options for no down payments, no private mortgage interest and competitive interest rates. Since the program’s inception, it has helped more than 20 million veterans and their families realize the dream of homeownership, with 2013 seeing more loans being awarded than ever before.

VA loans truly provide an affordable financing situation thanks to the distinct advantage it offers over traditional mortgages. These loans do not require any down payment and they don’t require the borrower to obtain private mortgage insurance. In addition, the seller or builder is allowed to pay all of the veteran’s closing costs, making the total cash required to purchase a home, in some instances, zero.

Other distinct advantages of VA loans include:

• Borrowers are not required to reach an income threshold; however, they are expected to have stable, reliable income that will cover monthly expenses, as well as residual income.
• Since VA loans are partially guaranteed by the federal government, financial institutions carry less risk with these loans, so they offer interest rates that are typically 0.5 to 1 percent lower than conventional interest rates.
• Qualified active military members can use their Basic Allowance for Housing (BAH) to pay for some or all of their monthly mortgage costs, as it is counted as effective income.
• VA loans do not have a pre-payment penalty if the home is paid off before the loan matures.

VA loans do have housing price limits of up to $417,000 in most parts of the country. However, borrowers who live in high-cost counties may be able to purchase a home exceeding that value without a down payment.

Service members, veterans and surviving spouses may be eligible for a VA Home Loan if they meet one or more of the following conditions:

• Served 90 consecutive days of service during wartime or 181 days of service during peacetime.
• Served more than 6 years in the National Guard or Reserves.
• Spouse of a service member who died in the line of duty or as a result of a service-related disability.

Another option available to service members and veterans is the VA refinancing program. Refinancing through the VA program will allow the borrower to take advantage of lower rates and decrease their monthly mortgage payment. Military homeowners can also get cash back on a VA refinance and use the proceeds for a variety of needs, including paying off debt or performing home repairs.

As lending requirements have tightened, the VA Home Loan program has become more important than ever. To find out more information about VA Home Loans or whether or not you are eligible, contact Starkey Mortgage’s Senior Vice President and Regional Manager, Debra Watt (NMLSR #346277, NC License #I-149994) at 704-246-0132 or dwatt@starkeymtg.com. For more information on Starkey Mortgage, visit www.StarkeyMortgage.com.

Equal Housing Lender. WR Starkey Mortgage, LLP NMLSR# 2146, 10800 Sikes Place, Suite 110, Charlotte, NC 28277, Branch Phone: 704.849.2125, Branch NMLSR#93518, Branch License #L-112550-102, SC License #MLB-93518.