The VA ARM (adjustable rate mortgage) can get you into a home with a lower monthly mortgage payment. Rates are fixed for 3 or 5 years.

VA LOAN RATES

National Averages for New Home Loans
April 18, 2014

30 YEAR FIXED

0.000 points
4.125% / 4.209% APR

15 YEAR FIXED

0.000 points
3.250% / 3.396% APR

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- Veteran Documents -

Certificate of Eligibility
and DD-214

GET A VA HOME LOAN

LOAN PURPOSE

VA Hybrid ARM

Adjustable Rate Mortgage for Veterans

The VA Hybrid ARM product provides for an initial fixed interest rate for a period of three or five years, and then adjusts annually after the initial fixed period. The 3/1 and 5/1 VA Hybrid ARM products allow a 1% annual interest rate adjustment after the initial fixed interest rate period, and a 5% interest rate cap over the life of the loan. Interest rate adjustments must occur on an annual basis, except for the first adjustment which may occur no sooner than 36 months from the date of the borrower's first mortgage payment on the 3/1 ARM or 60 months from the date of the borrower's first payment on the 5/1 ARM. The loan term is 30 years for either of these loans.

INDEX AND MARGINS

The index is the weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of one year. Also known as the 1-Year Constant Maturity Index. VA ARM loans have either a 2.00% margin or a 2.25% margin.

LIFE CAP

Initial Note Rate plus 5%

ADJUSTMENT CAP

One percent (1%) annually after the initial fixed rate period of 3 or 5 years.

FIRST ADJUSTMENT DATES

Government loans only adjust 4 times per year (January 1, April 1, July 1, and October 1). The loan's first adjustment will occur with the corresponding adjustment period that follows the initial fixed period. For example, if the initial period ends in February, the rate will adjust in April and then annually thereafter until maturity.

3/1 VA Hybrid ARM: the first rate adjustment will occur between the 36th and the 42nd payment due date.

5/1 VA Hybrid ARM: the first rate adjustment will occur between the 60th and the 66th payment due date.

QUALIFYING RATE

Initial Note Rate

* This product description is for informational purposes only. VALoans.com currently does not offer VA ARM Products.

VA LOAN ARTICLES

Read About Veteran Mortgage News, Updates, and Guidelines
Do VA Loans Require Flood Insurance?

Some borrowers want to know whether there’s a requirement for hazard insurance with VA home loans. A quick look at VA loan rules covering the hazard insurance issue, reveals a requirement for the lender to insure the home is protected.

VA Loans for Dependent Children of Veterans?

VA loans are generally for only the veteran, veteran and spouse together, or the surviving spouse of a veteran under certain circumstances. Some non-veterans are allowed to apply.

Is Hazard Insurance Required for Suburban Homes?

Hazard insurance issues for suburban homes may differ from those of condos and townhomes, but one thing common to all hazard insurance policies is the issue of who receives the insurance payout if a claim on the insurance is necessary.

Are There Title Restrictions on VA Loans?

VA loans are assumable. The owner can allow another person to assume responsibility for the loan with the participation of the lender, and there should be no restrictions on the owner’s ability to sell the home.

The Good Neighbor Next Door Program

There are many types of VA home loans available for qualified borrowers, but there are some programs that accept VA loans that aren't as well known. One is known as the Good Neighbor Next Door program.