Demystifying the Veterans United Home Loans Mortgagee Clause

Buying a home is likely one of the most exciting and stressful times in a person’s life. As a veteran using your VA home loan benefit, having a trusted lender like Veterans United guiding you through the process can provide peace of mind. One key but often overlooked detail when obtaining a mortgage is the mortgagee clause.

As we dive into the details around mortgagee clauses, I’ll share key information in easy-to-understand terms to help demystify what can be a confusing clause Whether you’re a first-time homebuyer or looking to use your VA loan benefit again, understanding the mortgagee clause is an important part of the home buying process

What is a Mortgagee Clause?

A mortgagee clause, also sometimes called a “loss payable clause”, is a section within your homeowners insurance policy that provides details on who gets paid in the event you need to file a claim.

Specifically, the mortgagee clause states that your lender – in this case Veterans United Home Loans – has a financial interest in your home. So if something happens to your home and you need to file a claim with your insurance company, your lender will get reimbursed first before you receive any claim funds.

Essentially, the mortgagee clause protects the lender’s interest in your home until you’ve fully paid off your mortgage. This ensures they can recover their investment if the home is destroyed or damaged.

Why is the Mortgagee Clause Important?

There are two key reasons the mortgagee clause is a critical component of your homeowners insurance policy:

1. It protects the lender: As mentioned, it ensures the lender can recover their investment if you file an insurance claim. This protects their financial interest.

2. It protects you: By listing your lender on the policy and agreeing to the mortgagee clause, you fulfill your lender’s insurance coverage requirements. This is key to obtaining and maintaining your mortgage with favorable terms.

If the mortgagee clause was missing from your policy, your lender may force-place coverage at a higher cost to you or call your loan due immediately. Neither situation is ideal, so having the clause protects you financially.

How Does the Mortgagee Clause Work?

When you purchase homeowners insurance, the mortgagee clause is automatically included on the policy if you have a mortgage. Here is a general overview of how it works if you need to file a claim

• You file a claim with your insurance company for home damage or destruction.

• The insurance company determines the total amount of reimbursement you’re eligible for based on your coverage details.

• Your lender, Veterans United Home Loans, gets paid first out of the reimbursement funds up to the amount you still owe on your mortgage.

• Any remaining funds are paid to you directly You can use this amount toward repairs or rebuilding your home

To ensure your lender is properly listed, the mortgagee clause will include Veterans United’s full legal name and mailing address. This identifies them as an interested party on your policy.

Veterans United Home Loans Mortgagee Clause Details

Now that we’ve covered the basics of what a mortgagee clause is and how it works, let’s look at the specifics around Veterans United Home Loans’ clause language.

The Veterans United mortgagee clause is as follows:

Veterans United Home Loans
Its Successors and/or Assigns (ISAOA)
PO Box 7729
Springfield OH 45501-7729

Key details include:

• Full Legal Name: The lender’s full legal name is listed as Veterans United Home Loans.

• Successors/Assigns: This indicates the clause extends to any future entities Veterans United assigns your mortgage to.

• ISAOA: Stands for “Its Successors and/or Assigns” and reinforces succession rights.

• Mailing Address: The PO Box listed is where insurance claim checks should be mailed.

This clause protects Veterans United’s interest by giving them the right to insurance funds first in the event of a loss until the mortgage is repaid.

Tips for Your Homeowners Insurance Policy

As you shop for homeowners insurance and review policy documents, keep the following tips in mind:

• Verify the mortgagee clause lists Veterans United Home Loans properly. Double check the name, address, and succession rights language.

• Make sure the clause is included on both your homeowners policy and flood insurance policy if required.

• Check that the amount of coverage meets your lender’s requirements. Ask your insurance agent if you’re unsure.

• Review the mortgagee clause any time you renew your policy or change insurance companies.

• Contact Veterans United if you have any questions about compliance. They’re ready to help!

Working With Veterans United Home Loans

As the largest VA mortgage lender in the country, Veterans United has funded over 1 million VA loans. Their experience navigating VA guidelines and requirements is unmatched.

I’ve worked with Veterans United myself as a repeat VA homebuyer and continue to be impressed by their expertise and stellar customer service. They understand the challenges faced by military families and are dedicated to making the process as smooth as possible.

Some key benefits of working with Veterans United include:

• Avoiding common VA loan mistakes and pitfalls
• Receiving credit for your military service
• Potentially qualifying with lower credit scores
• Skipping down payments and monthly mortgage insurance
• Accessing competitive interest rates

Throughout the process, you’ll have a dedicated loan specialist guiding you through every step – including properly documenting the mortgagee clause.

Let Veterans United Handle the Details

Understanding mortgagee clauses protects you and your lender when obtaining home financing. But as the borrower, you don’t have to try to figure all the details out yourself.

Leave it to the professionals at Veterans United Home Loans to ensure your policy meets all requirements for a smooth closing and long-term mortgage experience. Focus on finding your perfect home, and let your lender handle the rest!