Yes, it is possible to avoid an escrow account on a VA home loan and manage your own payments for home insurance and taxes. One lender that offers this option is UWM (United Wholesale Mortgage). However, it’s important to note that UWM may have certain requirements for borrowers to qualify for this arrangement, such as a higher credit score and the ability to make those payments independently. We here at Creekside Mortgage use UWM as one of our lenders and broker many loans to them every year.
By opting out of an escrow account, you have the flexibility to retain the funds in a money market account and earn interest on them. In the past, when interest rates were low, this may not have been a significant advantage. However, with recent interest rate increases, the benefits of keeping the funds and earning interest have become more substantial.
This option allows you to have more control over your finances and potentially earn additional income through interest. It’s essential to evaluate your financial situation and determine if managing your own insurance and tax payments is the right choice for you.
If you’re interested in exploring this option further, it’s advisable to reach out to us here at Creekside Mortgage, Inc. We can provide you with more information on the specific requirements and benefits associated with avoiding an escrow account on your VA home loan.