Energy Efficient Mortgage is a loan that can be done concurrently with a purchase, cash out refinance or even streamline refinance. It is designed to get you up to $6000 of additional financing to upgrade items in the home that provide energy efficiency. Items such as insulation, windows, doors, heating and air conditioning and water heaters are just some of the many items covered. You cannot use this program for upgrading a washer/dryer, refrigerator or like items.
The VA funding fee is a charge directly from the VA that goes back to the VA on all VA loans. This fee varies by type of loan you are doing, amount of down payment on purchase, whether you were active duty or Reservist/Guard and if you have used a VA loan before. It can range from .5% of the loan amount up to a maximum of 3.3% of the loan amount. Although the amounts can get quite expensive, having a good lender to work with can show you how to structure the loan where they (the lender) can pay part or that entire fee for you.
If the VA has awarded you any service-connected disability that is 10% or greater and you receive any monthly compensation, you are not required to pay the VA funding fee.
You can use your VA eligibility multiple times, you can have two VA loans out at one time and you can even refinance a VA loan if the home is now your investment property.
You can only purchase or cash out refinance a home using a VA loan initially if it is or will be your primary residence. However, if you later purchase a new home for your primary residence, you can not only keep the old home with the VA financing, but you can use a new VA loan to purchase the additional home. Even better, you can do a streamline refinance on the previous home you lived in if it still has VA financing in place. You cannot use a VA loan to purchase a second home or an investment home. There are some other restrictions regarding this. Please contact us for further questions.
In many cases, you can obtain a VA loan above $417,000. Depending on the state and county where you live, there are much higher limits. Even if your particular area has a limit of $417,000, this does not mean you are limited to that with the VA. We have the ability to underwrite and approve VA loans up to 1.5 million dollars. Please contact us for further details.