Men and women in the military often seem to miss home and family way more that other people do. That is why VA made it easier for them to get financing for the homes of their dreams.
VA loans, specifically developed for active military and veterans, offer a great home-buying opportunity. Featuring relaxed requirements, fast approvals, and multiple benefits they are a great financing tool for qualified individuals. Should you be an active military or a retired veteran looking to buy a home, a VA loan is the first thing you should look into.
Saving Money Is No. 1 Benefit of VA Loans
VA loans can save you money in many ways. Unlike other home loans, VA loans do not require any down payment. It is a great opportunity to become a homeowner without waiting for years to save up money to put down on a new home. The money saved may be used for anything a borrower may desire.
Mortgages greater than 80% of home equity require mortgage insurance, commonly known as PMI. VA loans have this requirement waived, saving a borrower another good chunk of money. The VA issues loan repayment guarantees to lenders, ensuring repayment in case of defaults. That alone eliminates the need for private mortgage insurance.
Another great benefit of VA loans is lower interest rate. Lower rates always result in lower monthly payments, freeing up the funds for other uses and decreasing overall borrowing costs.
Easy Qualification Criteria Are an Unparallel Advantage of VA Loans
Income requirements are way less restrictive than with traditional home loans. In fact, the VA does not require borrowers to have a large household income in order to qualify a minimum residual income requirement is very low and easily achievable by most, if not all, borrowers. The VA also does not enforce minimum credit score requirements, like most lenders do. The only qualification to meet is maintaining delinquent-free credit history for at least one year before making a loan application. Similarly to other loans, a maximum debt-to-income requirement is enforced by the VA in order to ensure the ability of the borrower to handle debt service.
To qualify for a VA loan a borrower should be military-enlisted or a retired military with certain service length requirements to satisfy. Many of those are based on year of enlistment, rank, and some other factors. All veterans may qualify, provided they have been discharged from active service under conditions other that dishonorable. In many cases military and veteran spouses are eligible for VA loans.
Don Not Let This Deal Pass By!
VA loans present a great opportunity to own a home. Whether you are a first-time home buyer starting your family or a veteran getting back to everyday civilian life, many great benefits of VA loan may help you to get settled in your new home hassle-free with minimal, if any, out-of-pocket expenses. Very basic qualification criteria are of great help to those with low income and not so great credit. If you are looking to finance your first home other benefits, besides the ones under VA loan program, are available to you in form of tax credits and incentives. Simply put, VA loans combine easy terms, low rates, affordable payments, and relaxed income requirements as a reward to those who have served, or are currently serving to protect the United States.