Traditional VA Loans Are a Great Value
Our heroes in the armed services face many challenges when returning to civilian life here in Oregon, but qualifying for a home loan doesn’t have to be one of them. This is because eligible veterans and members of the armed services qualify for Veteran’s Administration (VA) Loans.
VA Loans can be used for the purchase or refinance of a home, and are available in 10, 15, 20, 25, or 30-year terms.
Unlike most conventional mortgages, VA Loans require no money down. Plus, their credit requirements are typically more lenient. Because of these factors, veterans who may have had poor credit issues in the past can still make the dream of homeownership a reality, and potentially with minimal out-of-pocket cost.
VA Loans require closely evaluated residual income, as well as upfront mortgage insurance, also referred to as the funding fee, provided by the VA. The cost of mortgage insurance varies based on the borrower’s specific eligibility and previous history of loan programs. Upfront mortgage insurance can be rolled into the total amount of the loan.
For Oregon Veterans, ORVET* Loans May Be an Even Better Option
The Veteran’s Administration loan program has plenty of benefits, and for many veterans and armed services personnel, it represents an excellent option.
But if you happen to be an Oregon resident, or see a move to the Beaver State in your near future, then you’d be well advised to look into the ORVET home loan, also known as the ODVA loan.
Just like a standard VA-backed mortgage, the Oregon VA loan is available with no down payment, and makes the advantages of homeownership affordable – even for veterans who may have issues with blemished credit.
Oregon VA Loan vs. Federal: What’s the Difference?
So, what’s the difference between the Oregon VA loan and a traditional VA-backed loan?
Let’s start with the interest rate. Because OVDA loans are subsidized by the Oregon state government and funded through tax-free, general obligation bonds, the interest rates tend to be even lower. It’s not uncommon to receive rates that are between half and three quarters of a percentage point lower than regular VA loans. That might not sound like much, but over the course of a 15 or 30-year mortgage, it really adds up.
While VA loans do not require personal mortgage insurance, they do require a funding fee in lieu of PMI. The funding fee ranges from 1.5 – 3.3% of the total loan amount, depending on the applicant’s credit history. Vets who take advantage of that program must pay the funding fee when the loan is issued.
In contrast, Oregon VA loans don’t require a funding fee, and that can mean thousands of dollars in savings for veterans.
Veterans who are not yet Oregon residents but who are considering a move to the state will be pleased to learn that the ODVA loan doesn’t require residency at the time of application. As long as the home will be occupied within 60 days of closing, a lack of current residency in the state of Oregon does not represent a problem.
The price limit for the Oregon VA loan is $417,000. Also, it’s important to note that unlike the federal VA loan program, the ODVA mortgage does require a down payment of between five and 20 percent. Further, buyers with less than 20% to put down will be expected to maintain personal mortgage insurance.
Oregon VA Loans: An Excellent Opportunity for OR Vets
This longstanding program has helped more than 334,000 Oregon veterans realize their dreams of owning a home, and as of this writing, the ODVA has loaned more than $7.5 billion to veterans.
You fought to defend the American Dream, and you deserve to have a piece of it for yourself and for your family. If you’re a veteran who is shopping for a home in or around Portland, Oregon and can afford to make a down payment of at least five percent of your home’s purchase price, then you owe it to yourself to look into ODVA loans.
Contact Options Financial Residential Mortgage today, and we’ll help you learn more about securing a VA loan, so you can achieve your dream of homeownership.
*American Pacific Mortgage Corporation does not offer the ORVET program, but will utilize a broker source to underwrite and fund.