VA Home Loan Mortgage Broker in McKinney, TX

A Veteran Helping Veterans

I served in the U.S. Air Force Security Forces from 2013 to 2017 and was honorably discharged. Today I'm a mortgage broker with NXT Mortgage, with 4 years in the mortgage business, and VA loans are my focus.

Because I work as a broker, I'm not tied to a single bank's products. I can shop your VA loan across a wide range of wholesale lenders and compare the options with you. The VA itself notes that terms and fees vary from lender to lender, which is why comparing matters. Not using a VA loan? Here’s how I work as a mortgage broker in McKinney for FHA, conventional and other home loans.

VA Purchase Loans

A VA-backed purchase loan can be used to buy, build or improve a primary residence, including a single-family home of up to 4 units or a condo in a VA-approved project. To qualify, you need a Certificate of Eligibility (COE), you must meet VA and lender standards for credit and income, and you must live in the home.

• No down payment required for eligible veterans, as long as the sales price isn't higher than the appraised value. Subject to eligibility and approval.
• No private mortgage insurance (PMI) or monthly mortgage insurance premiums
• No penalty for paying the loan off early
• Some closing costs may be paid by the seller

Source: VA-backed purchase loan

VA IRRRL (Streamline Refinance)

If you already have a VA-backed home loan, an Interest Rate Reduction Refinance Loan (IRRRL) replaces it with a new VA-backed loan. The goal is to lower your interest rate or move from an adjustable rate to a fixed rate. To be eligible, you must be refinancing an existing VA-backed loan and be able to certify that you live in, or used to live in, the home. Closing costs can be included in the new loan. Before refinancing, the VA suggests comparing your closing costs with your expected monthly savings to see if the refinance makes sense.

Source: Interest rate reduction refinance loan (IRRRL)

The VA Funding Fee and Who's Exempt

The VA funding fee is a one-time charge on most VA-backed loans. It helps lower the program's cost to taxpayers, since VA loans don't require a down payment or monthly mortgage insurance. The fee is a percentage of the loan amount and depends on the loan type, whether you've used the benefit before, and, for purchases, any down payment. You can pay it at closing or finance it into the loan.

You don't have to pay the funding fee if any of these apply:

• You receive VA compensation for a service-connected disability
• You're eligible for that compensation but receive retirement or active-duty pay instead
• You're a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
• You're a service member with a proposed or memorandum rating, issued before closing, showing you're eligible for compensation based on a pre-discharge claim
• You're an active-duty service member who provides evidence, on or before closing, of receiving a Purple Heart

If you're later awarded disability compensation that is effective before your closing date, you may be eligible for a refund of the funding fee.

Source: VA funding fee and loan closing costs

Understanding Your VA Entitlement

Your COE shows your entitlement, the amount the VA guarantees to your lender. If you have full entitlement, the VA does not set a loan limit, but your lender still has to approve the loan amount based on your credit, income, debts and assets. The maximum VA loan on a home is the lower of its appraised value or its purchase price.

If you've used your benefit before and haven't restored it, you may have partial (remaining) entitlement. In that case the county loan limit is used to work out how much the VA will guarantee. Entitlement can usually be restored once you sell the home and pay off the prior loan, or one time if you pay off the loan and keep the home.

Sources: VA home loan entitlement and limits; VA Home Loans: Loan Limits (benefits.va.gov); Eligibility for VA home loan programs

Seller Concessions: The 4% Rule

On a VA loan, the seller or builder can pay some or all of your normal closing costs, and the VA doesn't limit those credits. The VA does limit seller's concessions to 4% of the home's reasonable value, as shown on the VA Notice of Value. Concessions are extras the seller provides at no cost to you, such as paying your VA funding fee, paying off your debts, or prepaying your hazard insurance. On a purchase loan, the only cost you can finance into the loan is the VA funding fee.

Source: VA funding fee and loan closing costs

Texas Property Tax Exemptions for Disabled Veterans

Texas offers property tax exemptions to qualifying disabled veterans. Under Tax Code Section 11.22, a veteran with a service-connected disability rating may receive a partial exemption on any one property they own, and the amount depends on the rating. Under Section 11.131, a veteran who receives 100 percent disability compensation and is rated 100 percent disabled or individually unemployable may qualify for a total exemption on their residence homestead. Some surviving spouses may also qualify. You apply with the appraisal district in the county where the property is located. Whether you qualify is determined by the appraisal district.

Sources: Texas Comptroller: Property Tax Exemptions; Texas Comptroller: Disabled Veteran and Surviving Spouse Exemptions FAQ

Areas I Serve

I'm based in McKinney and help VA buyers and homeowners throughout North Texas, including:

• McKinney
• Frisco
• Allen
• Plano
• Prosper
• Denton
• Coppell
• Carrollton
• Lewisville
• The Colony
• Across Dallas–Fort Worth

Frequently Asked Questions