The Pros and Cons of VA Loans

A 30-second read by Nicholas Scheibner: The federal government has provided qualified veteran home buyers with a few mortgage-buying options to help purchase a home.  Below are some of the Pros and Cons for Veterans Affairs (VA) loans.

An important note VA loans are for primary residences only.

To determine if you are eligible for a VA loan, visit http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp

The first step in getting a VA loan is to obtain a certificate of eligibility from the VA: http://www.benefits.va.gov/homeloans/purchaseco_certificate.asp

Pros:

  • 0% down payment, if desired
  • No Monthly Mortgage Insurance
  • Can generally qualify for a larger mortgage than a Federal Housing Administration (FHA) loan

Cons:

  • The only person that can co-sign is a spouse
  • An additional fee is rolled into the loan. Depending on the situation, first time use of a VA loan could be anywhere from 1.5% – 2.4%.  The next home mortgage could be anywhere from 1.25% – 3.3%.

Baron Financial Group consults with independent mortgage professionals in order to explore options available to clients.  If you are thinking of purchasing a new home, refinancing a mortgage, or consolidating a HELOC (Home Equity Line of Credit), lean on us to help you through the process. Please contact your Baron Team if you have any questions.

What documents are safe to shred? What must I keep?

A 30-second read by Victor Cannillo: Whether you are tired of piles of papers cluttering up your home or are trying to go “paperless,” it is important to know what documents you should keep and which you could shred.

Below we list some of the important documents the Federal Trade Commission (FTC) suggests that you should always keep:

  • Birth certificates/ adoption documents
  • Social Security cards
  • Marriage licenses or divorce decrees
  • Tax returns
  • Passports or citizenship materials
  • Familial death certificates
  • For items like your home and car, you want to hold on to any automobile titles and home deeds for as long as they are in your ownership.
  • To see more, click here.

Shredding Timeline-The FTC recommends that you wait:

  • 7 years before shredding any tax-related receipts and cancelled checks.
  • 1 year before shredding bank statements, medical bills, etc.

Items such as credit card statements can be shredded right away once paid. To help reduce capital gains tax, retain home improvement receipts until your home is sold.

To view the FTC’s safe shredding timeline infographic, click here.

In addition to decluttering your home, shredding documents with personal information can help prevent identity theft.  Just remember to keep the listed documents above for the suggested amount of time.

Feel free to reach out to us for any other questions.