- Eligible home buyers are not required to have a down payment in most cases – typically cited as the greatest VA loan benefit. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.
- No monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.
- Limitation on buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
- Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.
- No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.
Two refinance options. The VA loan program allows homeowners with existing VA loans the option to lower their monthly payment with a new interest rate. Eligible homeowners who financed their property with a loan other than a VA loan can refinance into the VA loan program.- Second tier entitlement. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.
- An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.
- Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.
Entering the mortgage industry in 2001, Paul Hampton has over 18 years of mortgage lending experience with over 3,000 mortgage transactions closed. This Southern California native began his career at Ditech.com, a division of GMAC Mortgage.
From 2001-2005 Hampton was a part of the refi boom of the early 2000’s, closing an average of 50 mortgage loans monthly leading him to a member of the Ditech.com Presidents Club. This tempo of loan originations empowered and fueled his mortgage knowledge early on.
In 2005 Hampton joined Lenox Financial Mortgage in Costa Mesa CA. Shortly thereafter he became sales manager of the internet loan originations division and grew that department to 33 mortgage loan officers with a total monthly funding of over twenty million in gross revenue. His role in management broadened his knowledge of the mortgage industry from compliance, to secondary markets, to customer service retail and wholesale. His 13-year tenure at Lenox Financial Mortgage was instrumental to his mortgage lending prowess during a kaleidoscopic financial era.
Currently Paul Hampton is Vice President for The Money Branch, The Temecula Branch of Geneva Financial specializing in VA and government loans, as well as FHA, FNMA, FHLMC, USDA, and Non-QM.
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