Veteran Mortgage Options Go Beyond Traditional Federal Programs
A Veteran should know their options when shopping for a mortgage as it can save them thousands of dollars. For veterans in Oregon, there is a state-sponsored program that most large national banks and mortgage lenders are entirely unaware of. Veterans working with these national players are limiting their opportunities to save thousands of dollars or even being able to purchase a home.
Oregon is one of five states in the U.S. offering a veterans loan program at the state level. The Oregon Department of Veteran Affairs (ODVA) home loan program provides below-market mortgage rates for veterans when purchasing their primary residence in Oregon.
Since 1945, the State of Oregon has lent approximately $8 Billion in low-interest home loans to more than 334,000 veterans. The home loans offered through ODVA have several notable attributes:
ODVA mortgage rates are often .5% to .75% lower than those available for the Federal VA loan program or regular conventional conforming guidelines.
There is no funding fee required with an ODVA home loan (the Federal VA program has a funding fee ranging from 2.3 to 3.6% of the loan amount – slightly less if you have a down payment or are refinancing).
ODVA home loans require a down payment of as little as 3% for first-time buyers and a 5% minimum for previous homeowners (the Federal VA program does not require a down payment).
ODVA underwriting applies a more common-sense approach to general Fannie Mae guidelines, meaning they may approve a loan that wouldn’t meet a more stringent Federal VA or Conventional underwriting.
Here is a link to the ODVA website for additional information: https://www.oregon.gov/odva/Home-Loans/Pages/default.aspx
The bottom line is that veterans in Oregon have two excellent loan programs to consider. It is essential to consider the attributes of both programs to determine which is the best fit. Fortunately, A2Z Home Loans has years of experience with both programs, and we’re here to help make the process a little easier. It is an honor to support our local veterans in understanding their home financing options.
If you are a veteran, please click here to start an application. Alternatively, I am available day or night for your questions if you’d prefer to call (541-420-2625).