Why Choose 7th Level for your VA Mortgage Loan?
7th Level Mortgage is strategically located in Cherry Hill, NJ and is able to provide VA (Veterans Loans) Mortgages to residents in the states of New Jersey, Pennsylvania, Virginia, Delaware, Tennessee, Oklahoma and Florida. The owner of the company is a military veteran having served in the United States Armed Forces for over 10 years as both an enlisted soldier and commissioned officer. In 2012, 7th Level Mortgage was selected as one of the Top 25 Veteran owned companies in the Delaware Valley by Philadelphia Business Journal and we are proud to continue that fine tradition of serving the folks that have served our country.
If you are a Veteran and live or own a home in New Jersey, New York, Pennsylvania, Virginia, Maryland, Colorado, Florida, Texas and Ohio, please contact one of our VA mortgage loan experts to discuss the various ways we can help you secure the financing you need to literally save you thousands of dollars per year.
Most of our clients are within easy driving distance from our office, unlike large banks or internet based mortgage loan companies, our NJ VA Mortgage Loan experts are available at any time for a face to face meeting, in fact we encourage it! We specialize in all forms of VA mortgage loans and because we are located centrally in New Jersey, we can bring that experience to bear in PA, FL and Delaware as well. At 7th Level Mortgage we hold sacred the motto of HONOR, LOYALTY and INTEGRITY. We will NEVER mislead a client, we promise to give it to you straight and stand by our word, you have that promise from us on Day one.
What is a VA Loan?
Most VA Home Loans are handled entirely by private lenders or brokers such as 7th Level Mortgage. The Veterans Administration itself rarely if ever gets involved in the loan approval process. However, the VA "stands behind" the loan by guaranteeing a portion of it. If something goes wrong and you can't make the payments anymore, the lending institution can go to the VA to cover any losses they might incur. The VA loan guaranty is the "insurance" that is provided to the mortgage company that they will still receive the funds lent for your home mortgage.
Because the VA is providing insurance on the loan there are a great deal of advantages given to veterans when using their VA benefits to include but not limited to:
- No down payment as long as the sales price doesn't exceed the appraised value.
- No private mortgage insurance premium requirement.
- VA rules limit the amount you can be charged for closing costs.
- Closing costs may be paid by the seller.
- There is no charge or penalty fee if you pay the loan off early.
- VA may be able to provide you some assistance if you run into difficulty making payments.
Advantages of a Veterans Mortgage Loan
VA Loans are more popular today than at any point in time in the past!
The Department of Veterans Affairs guaranteed nearly 540,000 loans in 2012, hitting an 18-year high. That means more veterans are taking advantage of this program’s benefits, allowing them to own a home instead of continually renting.
The VA Mortgage Loan program is the most powerful home loan program on the market for veterans and military families. These flexible, government-backed loans come with significant benefits that open the doors of homeownership to veterans who might otherwise struggle to obtain financing.
If you use the VA Mortgage Loan calculator you will quickly be able to determine that the costs and fees associated with a VA loans are more beneficial to borrower then traditional conventional loans or FHA loans. We have historically found that veterans enjoy lower monthly payments and can afford more home using their NJ Veterans Mortgage Loan.
In addition, VA loans require no down payment or private mortgage insurance. They feature competitive rates and terms and allow qualified borrowers to purchase a home with little to no money out of pocket. Since saving for a large down payment can be challenging for a veteran or current armed services member, particularly with the expenses of raising a family, many of the terms and conditions of a VA loan can make it easier for them to get past this hurdle to homeownership.
We prefer to advocate that our Veteran service members utilize a Veteran Mortgage Loan because of the following:
1. No Down Payment
Saving money and building credit can be difficult for service members who are constantly on the move. With the VA Mortgage Loan, qualified borrowers can finance 100 percent of the home's value without putting down any money. In most cases, either the seller or 7th Level Mortgage will pay some if not all of the closing costs associated with a VA Loan thereby making it even more affordable. Take a look at the chart below to see how much you can save through the no-money-down benefit of the VA Loan.
VA Mortgage Loan Savings at Closing:
| Loan Amount | 0% Down | 5% Down | 10% Down | 20% Down |
|---|---|---|---|---|
| $150,000 | $0 | $7,500 | $15,000 | $30,000 |
| $250,000 | $0 | $12,500 | $25,000 | $50,000 |
| $350,000 | $0 | $17,500 | $35,000 | $70,000 |
| $450,000 | $0 | $22,500 | $45,000 | $90,000 |
2. No Private Mortgage Insurance
Many conventional lenders require borrowers to pay private monthly mortgage insurance unless they're able to put down at least 20 percent, understandably this is a difficult task for veterans to achieve. Private mortgage insurance (PMI) is an insurance that protects lenders in case of a borrower default. The problem is that it adds to your monthly mortgage payment. In order to remove PMI, your mortgage needs to be paid down to the equivalent of a traditional down payment. Then there is the paperwork and other challenges before you can finally enjoy the reduction in your mortgage payment because the PMI has been removed. As this chart clearly shows, the savings from removing PMI or not having it at all can be significant.
PMI Savings per Month:
| Loan Amount | Monthly Savings |
|---|---|
| $150,000 | Save $115/mo |
| $250,000 | Save $191/mo |
| $350,000 | Save $268/mo |
| $450,000 | Save $345/mo |
With a VA Mortgage Loan, however, there is no PMI. This is because the federal government backs all VA Loans and assumes the risk on behalf of the borrower that is typically covered by the PMI.
This VA Mortgage Loan allows you to buy more house or build more equity in your existing home, saving you thousands of dollars over the life of your mortgage.
3. Competitive Interest Rates
Interest rates on home loans are based on risk assumed by the bank to finance the loan. Because the VA backs each VA Loan with a guaranty, financial institutions carry less risk and can offer interest rates that are typically 0.75 to 1 percent lower than conventional interest rates. That translates into a savings for you over the life of your loan. Plus, a lower interest rate can help to stretch your budget even further.
Pair that lower interest rate with the ability to purchase a home with no money down and no private mortgage insurance and the savings start adding up significantly. Now you are able to look at homes that can fit your family’s needs, both now and into the future. Your dollar stretches further with all these savings through a VA Mortgage Loan.
Lower Interest = More Savings
| Loan Amount | $150k | $250k | $350k | $450k |
|---|---|---|---|---|
| Savings from a 0.5% reduction in interest | $14,760 | $24,480 | $34,200 | $43,920 |
| Savings from a 1% reduction in interest | $28,800 | $48,240 | $67,320 | $86,400 |
(Assumes 10% down on loan; see additional notes at bottom of page)
Additional Benefits
Basic Allowance for Housing
Basic Allowance for Housing (BAH) is a significant benefit for qualified active military members. Lenders can count your Basic Allowance for Housing as effective income, which means you can use BAH to pay some or all of your monthly mortgage costs. If you choose a mortgage payment that is covered by your housing allowance, then you may be able to pay more on your home monthly, thus paying your home off even sooner. Another benefit is that when you use your housing allowance to pay your mortgage, you will get that money back as equity if or when you sell that home.
No Pre-Payment Penalty
With many different types of loan types, paying off a home loan before it matures results in a pre-payment penalty. This is because lenders miss out on additional opportunities to collect interest payments. The pre-payment penalty is a way for financial institutions to recoup some of that money.
The VA Mortgage Loan allows borrowers to pay off their home loan at any point without having to worry about a pre-payment penalty. With the absence of a pre-payment penalty, borrowers are free to consider future home purchases and refinancing options.
Since its creation in 1944, more than 22 million veterans have achieved home ownership through the VA Home Loan program. Eligible veterans, current service members and their survivors continue to benefit from the advantages of a VA guaranteed home loan, giving them the assistance of getting quality mortgage and refinancing options.
A record 740,386 home loans were guaranteed by the VA in 2017, the largest year in the history of the program. Plus, the program gives you the ability buy the right home with an increased loan limit.
In 2017, the VA loan limit increased to $424,010, up from $417,000, not including 238 high cost counties where the limit is higher, with amounts of up to $721,050 in those areas.
The VA home loan entitlement can be restored one time if the loan is paid off. If the prior loan has been paid off and the property is no longer owned, the entitlement can be restored as many times as desired. VA eligibility can be reused for every home purchase from the first to the last and veterans commonly use more than one VA loan in their lifetime.
Additionally, multiple VA loans are possible, but happen infrequently. For instance, if a veteran is looking to move and rent out their existing home or is looking to purchase a smaller vacation home.
Find out if you are eligible for a VA Home Loan
VA Loan Eligibility Requirements
If you are considering a VA Home Loan the fastest and easiest way to find out if you qualify is by contacting one of our VA Mortgage loan experts who can help to determine your eligibility, qualification level and let you know what your options are.
It doesn't cost you anything and there is no obligation. You will simply be connected to a VA Loan Specialist who will let you know how to maximize your VA benefits by calling 866-473-2549.
Step 1. Review VA Loan Eligibility Requirements
Generally speaking almost all active duty and honorably discharged service members are eligible for a VA Home Loan.
You May Be Eligible If Any One of the Following are True:
- Served 181 days during peacetime (Active Duty)
- Served 90 days during war time (Active Duty)
- Served 6 years in the Reserves or National Guard
- You are the spouse of a service member who was killed in the line of duty.
If you can say "Yes" to any of one these statements, congratulations, you may be eligible for a VA Loan! So, how do you take the next step?
Get connected to a VA Loan Expert who can help you maximize your VA benefits and let you know what you qualify for. There are no obligations and your credit will not be pulled.
Step 2. Find Out What You Qualify For
Take the first step in your VA Mortgage Loan by getting in touch with a VA Specialist.
NJ VA Loans
If you are a current military member or veteran of our armed forces looking to make a home purchase in New Jersey, a VA loan may be the best option for you. New Jersey VA loans enjoy the same benefits that are available nationally, such as no down payment required and no private mortgage insurance. The maximum loan amount for the state is also very generous at $510,400 for most areas, although in higher median income areas, the limit may be as high as $765,600. These limits, along with the full benefits of securing a VA loan, make it possible for many veterans to get into their dream home. To find out more about how the criteria, requirements, and benefits of VA loans, contact 7th Level Mortgage today.
FL VA Loans
Many lenders located in Florida or planning to purchase in Florida may qualify for a VA loan. VA loans in FL function much like they do in other areas of the nation, requiring no down payment and no private mortgage insurance. The maximum loan limit for most areas in Florida is $510,400, although this limit is raised to $552,000 in some counties with a higher median income. VA home loans are an excellent option for any qualifying veteran looking to purchase a new home or refinance an existing mortgage. The experts at 7th Level Mortgage can help you determine if a VA loan is the best option for your Florida home purchase.
For More Information on VA Loans:
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