FAQ - VA Hybrid Loans
VA Hybrid Loans are often misunderstood, even though they've been on the market for awhile. Many veterans wonder how to qualify and whether or not they are eligible. They want to know how much money they can save and whether or not these loans are safe.
We have attempted to answer some of the most frequently asked questions here.
What is the biggest benefit of VA Hybrid loans?
The backing by the U.S. Government. No other mortgage product offers this. Because of this backing, you can be sure that your interest rate will be in lowest in the industry.
How do VA Hybrid Loans compare to other products on the market?
The two main types of mortgages are fixed-rate and adjustable-rate. VA Hybrid Loans offer the best of both of these types of mortgages. You'll have a fixed-rate period, typically 3 or 5 years, which provides stability, and an adjustable-rate, which gives you lower initial interest rates.
Are they safe?
The question comes up because of all the stink about ARMs during the real estate crisis. However, the U.S. Government would not back these loans if they didn't think they were safe. Additionally, you'll have both a yearly cap and a lifetime cap.
Can I ever get out of my VA Hybrid Loan?
Of course. VA Hybrid Loans provide the option of streamlining out at any time for any reason. Plus streamline loans have lower qualification requirements than traditional refinancing. Being able to get out of your loan is critical for two reasons. First, if rates drop further, you want to be able to take advantage of those additional savings. However, if the rates increase, then you want to be able to get into something more stable.
These FAQs are a good starting point for getting your questions answered, however, you will want to speak with one of our qualified loan officers to find out how VA Hybrid Loans could benefit you and your family.